Yuan slide sparks fears of US clash
11 April 2012
China's currency, the yuan, fell today as traders returned from the Chinese New Year break, increasing the risk of a clash with the Obama administration.
US Treasury Secretary Tim Geithner at his confirmation hearing said President Obama believed Beijing was manipulating the yuan to the detriment of US workers — a much tougher line than the Bush administration.
China has allowed the yuan to drop 0.3% so far this year, after it gained 7.1% in 2008, the biggest advance since a peg to the dollar was scrapped in 2005.
The yuan dropped 0.13% to 6.8457 a dollar in the morning session in Shanghai.