The dollar hovered near a six-month high against a basket of currencies as investors awaited a Federal Reserve policy decision.» Read More
China should keep the yuan fairly stable to anchor expectations about the currency's rate of climb, a prominent economist said in remarks published on Monday, adding to a growing tide of calls for it to rise more slowly.
China reaffirmed its commitment on Wednesday to regular high-level talks with the United States that visiting Treasury Secretary Henry Paulson hopes will help to pry open Chinese markets and speed the yuan's rise.
China's capital spending on assets such as flats and factories eased at the start of the year, providing more evidence of a modest slowdown in the world's fourth-largest economy.
China's retail sales grew by 20.2 percent in January and February from a year earlier, supported by strong consumer spending but also propped up by the highest inflation in nearly 12 years.
China's consumer inflation jumped in February to an 11-year high of 8.7 percent, presenting Beijing's stability-conscious leaders with a big economic headache in the run-up to the Olympic Games.
A stronger yuan can help temper price pressures but plays second fiddle to monetary policy in China's struggle against inflation, the country's central bank chief said on Thursday.
Plans for sweeping federal programs that would aid troubled mortgage borrowers would bring unfair relief to speculators and reward investors who made bad bets, U.S. Treasury Secretary Henry Paulson said Thursday.
China's economy is likely to grow around 10 percent this year despite a global slowdown stemming from the U.S. subprime mortgage crisis, Dominique Strauss-Kahn, managing director of the International Monetary Fund, said on Friday.
China needs a more flexible currency to ward off rising inflation risks and the danger that its economy might boil over, U.S. Treasury Secretary Henry Paulson said on Wednesday.
China and the United States downplayed points of contention in trade relations, saying both sides needed to fend off protectionism as they prepared for difficult negotiations on economic disputes ranging from exchange rates to product safety.
China could be moving in the direction advocated by Europe of a stronger yuan, European officials said. The ECB and the People's Bank of China would set up a working group at once to examine currency issues.
The euro's rise against the yuan is largely a reflection of a sharp drop in the dollar, and the European Union should look to Washington to resolve the problem, Chinese Premier Wen Jiabao said on Wednesday.
China and the 13 countries using the single European currency agreed on Tuesday to cooperate to reduce global economic imbalances while heading off lurches in exchange rates.
French President Nicolas Sarkozy called publicly on Chinese President Hu Jintao to let the yuan rise more swiftly against the euro.
China's central bank chief said on Sunday it could consider a wider trading band for the yuan currency after finance chiefs from the Group of 20 economic powers renewed calls for greater currency flexibility.
U.S. Treasury Secretary Henry Paulson said on Thursday that China should pick up speed in making the reforms necessary to allow the yuan to float, warning China about rising trade protectionist sentiment.
Irked by the relentless ascent of their currency, euro zone finance ministers have decided to target China's yuan as the chief culprit in a quest for fair play on global exchange rates and trade.
Beijing will cap a program allowing its citizens to invest in Hong Kong's stock market, regulators said on Friday, scaling back an earlier aggressive plan to open a gateway for its capital accounts.
A more flexible yuan would not hold back China's growth or cause deflation but would help Beijing rebalance its economy towards domestic consumption, a top U.S. Treasury official said on Thursday.
The Chinese yuan rose sharply against the U.S. dollar on Monday after the Chinese central bank set a higher reference rate for the Chinese currency following Friday's poor U.S. jobs data.