Asia, Currency | featured news

The Obama administration has declined to label China a currency manipulator, although it says China's currency remains significantly undervalued.

China loosens its currency controls in a move that may spur gains in the value of the yuan. From Monday, the yuan can fluctuate up to 1% in trading against the US dollar from a fixed price set by the central bank, the People's Bank of China said.

The Senate on Tuesday approved a bill aimed at pushing China to let its yuan currency rise in value in the hope of saving American jobs, sending it to the House of Representatives where its fate is uncertain.

U.S. legislation to press China to revalue its currency narrowly cleared a Senate procedural vote before a formal vote later on Thursday but it faced stronger opposition in the House of Representatives.

Every six months, the Treasury issues a report declaring that China’s currency is undervalued, draining dollars and jobs out of the U.S. economy. And every six months, the Treasury defers action, saying the Beijing government is not manipulating its currency. But with the prolonged slump in jobs, pressure is mounting among American politicians — as well as those in Europe, Brazil and emerging markets — to challenge China, even if that means imposing import tariffs to protect domestic industries and jobs.

The yen's fall to its lowest level against the dollar and the euro in months is the latest sign that a coordinated post-earthquake intervention is working.

WASHINGTON (Reuters) - Chinese President Hu Jintao urged an end to a "zero sum" Cold War relationship with the United States and proposed new cooperation, but resisted U.S. arguments about why China should let its currency strengthen.

China's yuan currency remains "substantially undervalued" and it is in Beijing's own interest to let it appreciate more rapidly to ward off inflation risks, U.S. Treasury Secretary Timothy Geithner said on Wednesday.

The United States should use all available tools, including labeling China a currency manipulator, to put pressure on Beijing to raise the value of its yuan, a U.S. watchdog panel said on Wednesday.

China lashed out at Japan and the US for their stance on territorial disputes in waters off its coast as Asian leaders gathered in Hanoi, hindering talks on currency and trade policies before a Group of 20 ...