Wednesday, June 13, 2007

Paulson Resists Lawmakers' Demands to Cite China for Currency Manipulation

(Bloomberg) -- U.S. Treasury Secretary Henry Paulson
resisted Congressional demands to accuse China of currency
manipulation, while chiding America's second-largest trading
partner for an ``undervalued'' yuan.

The yuan ``is undervalued and market sentiment clearly
favors appreciation,'' the Treasury said in its semi-annual
review of currency policies released today in Washington. China
didn't meet the technical definition of manipulation because the
U.S. couldn't determine the intent to seek a trade advantage.
China's trade surplus with the U.S. surged to a record in 2006.


Read more at Bloomberg Currencies News

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