News / Asia

    Chinese Yuan Rises to New High Against Dollar

    The Chinese currency has risen to a new high against the dollar, as U.S. lawmakers push to get tougher on China for what they say is an undervalued currency.

    Since Beijing removed the yuan's peg to the U.S. dollar in June after pressure from its largest trading partners, the yuan has strengthened only by about one percent.

    On Tuesday, the yuan reached its highest level against the dollar after China's central bank set the reference rate at 6.7378 to the dollar.

    The yuan's surge in the past few days comes as several U.S. lawmakers, some facing re-election in November, push for tariffs on imports from China. They argue that the yuan is undervalued, making Chinese goods unfairly cheap, which forces U.S. industries to shut down, contributing to high joblessness.

    U.S. officials have expressed frustration that China has not let the yuan appreciate. National Economic Council Director Lawrence Summers carried that message to Beijing last week when he met with Chinese President Hu Jintao and other senior officials.

    "We have to wait and see what happens," said Andy Rothman, a market strategist in Shanghai for the investment bank CLSA Asia Pacific Markets, "but I think the initial signal from the Chinese government is, we hear Obama's message and will want to try to work with him on the political aspect of this problem."

    U.S. Treasury Secretary Timothy Geithner testifies Thursday before a congressional committee on this issue. Some lawmakers have been disappointed that the Treasury Department refrained from calling China a currency manipulator in its past three reports. The next report will come out on October 15.

    China's central bank only allows the yuan's value to move half a percent above or below its daily reference rate. China's trading partners argue its managed exchange rate causes global financial imbalances, because it sells more to the world than it imports.

    China's trade surplus shrank 30 percent to $20 billion in August from July, but it was still the second-highest monthly surplus this year.

    Chinese Premier Wen Jiabao, speaking through a translator, told the World Economic Forum in the northeastern Chinese city of Tianjin Monday that China is pursuing a more balanced trade flow.

    "We do not pursue surplus in foreign trade. China runs a trade surplus with the United States and Europe, yet a trade deficit with Japan and the ROK [South Korea]," he said. "Our export growth is rapidly recovering, yet our imports have grown even faster. We cannot and will not pursue development with our door closed."

    But some market analysts say if the global economy weakens, China may depreciate the yuan or keep it at a virtual peg to the dollar to protect exports. The U.S. economic recovery is slowing and budget woes are dragging down European demand.

    China has always insisted it will take a gradual approach toward a more flexible exchange rate. Its banking authorities stress that the yuan's value should be viewed against its current standard, which is a basket of currencies including the euro, the Japanese yen, and not solely on its exchange rate with the dollar.

    The dollar has weakened against other major currencies in the past several days. On Tuesday, it hit a new 15-year low against the Japanese yen, and it remains near a five-month low against the Australian dollar.

    You May Like

    US, Somalia Launch New Chapter in Relations

    US sends first ambassador to Somalia in 25 years; diplomatic presence and forces pulled out in 1993, after 18 US soldiers were killed when militiamen shot down military helicopter

    Brexit Vote Ripples Across South Asia

    Experts say exit is likely to have far-reaching economic, political and social implications for a region with deep historic ties to Britain

    Russian Military Tests Readiness With Snap Inspections

    Some observers see surprise drill as tit-for-tat response to NATO’s recent multinational military exercises in Baltic region

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Testing Bamboo as Building Materiali
    X
    June 27, 2016 9:06 PM
    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Testing Bamboo as Building Material

    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Orphanage in Iraqi City Houses Kids Who Lost their Parents to Attacks by IS

    An orphanage in Iraqi Kurdistan has become home to scores of Yazidi children who lost their parents after Islamic State militants took over Sinjar in Iraq’s Nineveh Province in 2014. Iraqi Kurdish forces backed by the U.S. airstrikes have since recaptured Sinjar but the need for the care provided by the orphanage continues. VOA’s Kawa Omar filed this report narrated by Rob Raffaele.
    Video

    Video Re-Opening Old Wounds in a Bullet-Riddled Cultural Landmark

    A cultural landmark before Lebanon’s civil war transformed it into a nest of snipers, Beirut’s ‘Yellow House’ is once again set to play a crucial role in the city.  Built in a neo-Ottoman style in the 1920s, in September it is set to be re-opened as a ‘memory museum’ - its bullet-riddled walls and bunkered positions overlooking the city’s notorious ‘Green Line’ maintained for posterity. John Owens reports from Beirut.
    Video

    Video Brexit Resounds in US Presidential Contest

    Britain’s decision to leave the European Union is resounding in America’s presidential race. As VOA’s Michael Bowman reports, Republican presumptive nominee Donald Trump sees Britain’s move as an affirmation of his campaign’s core messages, while Democrat Hillary Clinton sees the episode as further evidence that Trump is unfit to be president.
    Video

    Video New York Pride March A Celebration of Life, Mourning of Loss

    At this year’s march in New York marking the end of pride week, a record-breaking crowd of LGBT activists and allies marched down Manhattan's Fifth Avenue, in what will be long remembered as a powerful display of solidarity and remembrance for the 49 victims killed two weeks ago in an Orlando gay nightclub.
    Video

    Video NASA Juno Spacecraft, Nearing Jupiter, to Shed Light on Gas Giant

    After a five-year journey, the spacecraft Juno is nearing its destination, the giant planet Jupiter, where it will enter orbit and start sending data back July 4th. As Mike O'Sullivan reports from Pasadena, California, the craft will pierce the veil of Jupiter's dense cloud cover to reveal its mysteries.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.
    Video

    Video Tunisian Fishing Town Searches for Jobs, Local Development Solutions

    As the European Union tries to come to grips with its migrant crisis, some newcomers are leaving voluntarily. But those returning to their home countries face an uncertain future.  Five years after Tunisia's revolution, the tiny North African country is struggling with unrest, soaring unemployment and plummeting growth. From the southern Tunisian fishing town of Zarzis, Lisa Bryant takes a look for VOA at a search for local solutions.
    Video

    Video 'American Troops' in Russia Despite Tensions

    Historic battle re-enactment is a niche hobby with a fair number of adherents in Russia where past military victories are played-up by the Kremlin as a show of national strength. But, one group of World War II re-enactors in Moscow has the rare distinction of choosing to play western ally troops. VOA's Daniel Schearf explains.
    Video

    Video Muslim American Mayor Calls for Tolerance

    Syrian-born Mohamed Khairullah describes himself as "an American mayor who happens to be Muslim." As the three-term mayor of Prospect Park, New Jersey, he believes his town of 6,000 is an example of how ethnicity and religious beliefs should not determine a community's leadership. Ramon Taylor has this report from Prospect Park.
    Video

    Video Internal Rifts Over Syria Policy Could Be Headache for Next US President

    With the Obama administration showing little outward enthusiasm for adopting a more robust Syria policy, there is a strong likelihood that the internal discontent expressed by State Department employees will roll over to the next administration. VOA State Department correspondent Pam Dockins reports.
    Video

    Video Senegal to Park Colorful ‘Cars Rapide’ Permanently

    Brightly painted cars rapide are a hallmark of Dakar, offering residents a cheap way to get around the capital city since 1976. But the privately owned minibuses are scheduled to be parked for good in late 2018, as Ricci Shryock reports for VOA.

    Special Report

    Adrift The Invisible African Diaspora