Treasury says China not manipulating currency

Reuters News
Posted: May 27, 2011 4:14 PM

WASHINGTON (Reuters) - The U.S. Treasury Department ruled on Friday China was not manipulating its currency to gain an unfair trade advantage, but said Beijing still needs to quicken the pace of appreciation.

"Treasury's view ... is that progress thus far is insufficient and that more rapid progress is needed," the department said in the semiannual report that was originally due on April 15 but was delayed ahead of a key meeting with senior Chinese officials in Washington earlier this month.

The yuan closed at 6.4917 to dollar on Friday, little changed on day, but up 5.15 percent since it was depegged in June 2010.

(Reporting by Doug Palmer; editing by Neil Stempleman)