US declines to label China currency manipulator

WASHINGTON (AP) — The Obama administration has declined to label China a currency manipulator, although it says China’s currency remains significantly undervalued.

The decision came in a twice-a-year Treasury report on whether any nations are manipulating their currencies to gain trade advantages. The report noted that China has allowed its currency, the renminbi, to rise in value by 10 percent against the dollar since June 2010. But the report said that the currency still remains undervalued and more appreciation is needed.

The report also said the United States would be closely monitoring Japan’s currency policies. That country’s central bank has just launched a new effort to bolster the Japanese economy. That effort has weakened the value of the Japanese yen and could widen the US-Japan trade gap.

Source: Associated Press