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Treasury Department says China isn't manipulating its currency to gain a trade advantage
WASHINGTON (AP) ' The Obama administration has declined to label China a currency manipulator after seeing recent increases in the value of the yuan compared to the dollar.
The decision will likely anger unions and Democratic lawmakers, who have accused Beijing of artificially holdings down the value of its currency to gain trade advantages. A cheaper yuan makes Chinese goods less expensive when they are shipped to the United States. It also makes U.S. goods more expensive in China.
The Treasury Department says in its semi-annual report that the yuan, also known as the renminbi, has appreciated 12 percent against the dollar in the past 18 months. But it also says the pace of the currency's rise needs to accelerate.