Published: Sat, April 15, 2017
Money | By Oscar Reynolds

Trump says China won't be labeled a currency manipulator

Trump says China won't be labeled a currency manipulator

"Certainly for the past six months, which is the period notionally covered by the April 15 report, China has been intervening to raise the value of its currency, not to suppress it", said Matthew Goodman, a former Treasury official who helped to label China a currency manipulator during the Clinton administration.

Su Jian, an economics professor at Peking University, said Trump's remarks showed that China and the U.S. have reached consensus on the currency issue, given that China doesn't want the RMB to devaluate, while the USA doesn't want a strong dollar.

Stock markets meanwhile churned lower with cautious investors unwinding positions in subdued trade before the long Easter holiday weekend. Just last week, Trump called China the "world champions" of currency devaluation.

The dollar lost significant ground against the pound and Swiss franc as well, and as a result the dollar index versus a basket of major currencies lost about 0.7% to a two-week low of 100.040.

The president had previously argued that China artificially devalued their currency in order to boost exports, leading to American job losses and unfair competition for U.S. manufacturers. This is likely to limit further steep losses on the USD, but overall there's a high chance that the dollar could have already topped out for the year.

"We have no intention to stimulate exports by devaluing the currency, and there is no basis for a continuous devaluation of the renminbi", ministry spokesman Lu Kang said at a regular news conference. -China relations as the U.S.is looking for China to be an ally on North Korea. This flattening of the yield curve hurt bank stocks, which were among the biggest fallers on European markets.

The 10-year Treasury yield fell 14 basis points in a shortened trading week, which was the biggest weekly decline since the week of January 8, 2016, Reuters data showed. It fell more than 1.0 percent against the yen, sinking below 110 yen for the first time since mid-November.

BEIJING (AP) - Global stock markets turned lower and the dollar was volatile Thursday after President Donald Trump withdrew a threat to declare China a currency manipulator and said the us currency was "getting too strong".

Rickards noted that during the campaign Trump vowed to label China a currency manipulator on "day one," but the administration has already said it won't apply the label. German's DAX slid 0.4 percent to 12,108. A declaration that China manipulates the exchange rate of its yuan to gain a trade advantage could have opened the way to sanctions. But even despite that, trade between China and North Korea actually increased by more than 30 percent in the first three months of that year.

CURRENCY: The dollar steadied at 109.05 yen from Wednesday's 109.03 yen.

The euro EURUSD, -0.2531% jumped to an intraday high of $1.0679 after Trump's comments, but fell back to $1.0646 on Thursday.

U.S. Treasury benchmark yields hit near five-month lows as Trump's comments saying he favored low interest rates intensified a bond market rally, which was underpinned worries about potential U.S. military strikes against Syria and North Korea.

In commodities, oil prices fell on concerns about rising US output. Brent crude, used to price worldwide oils, shed 5 cents, to $55.81. The precious metal was down about 0.1 percent at $1,283.71 an ounce.

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