Geithner heads to China
The Treasury secretary is expected to discuss trade issues and ways to avoid branding China as a currency manipulator.
Treasury Secretary Tim Geithner will meet with Chinese Vice Premier Wang Qishan in Beijing on Thursday, after a two-day trip to India.
The meeting comes after Geithner decided over Easter weekend to delay a report on whether China is manipulating its currency. U.S. lawmakers have been pressuring Geithner to persuade China to devalue its currency, the yuan.
China is the second-largest U.S. trading partner, after Canada. The U.S. trade deficit with China in 2009 was $226.8 billion, down 15% from a year earlier, according to the U.S. Commerce Department.
China halted a gradual increase in the yuan's value against the dollar in July 2008 in an effort to protect its exports in the midst of the financial meltdown.
Meanwhile, the National Development and Reform Commission hinted at the possibility of China allowing the yuan to appreciate again. Traders were speculating today that China may extend the band in which the yuan can move against the dollar from plus or minus 0.3% a day to plus or minus 0.5%.
The hint suggests that Chinese policymakers are weighing what may happen if they let the yuan resume its climb after keeping it yoked to the dollar since mid-2008.
On Wednesday, China’s central bank set the yuan’s midpoint at 6.8259 per dollar, the strongest for the yuan in 10 months.
Elizabeth Strott contributed to this report.
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[BRIEFING.COM] The stock market finished a down week on a cautious note with small caps leading the retreat. The Russell 2000 lost 0.5%, widening its weekly decline to 2.6%, while the S&P 500 shed 0.3%. The benchmark index ended the week lower by 2.7%.
This morning, the market was provided a basis to rebound with the July employment report, which was just right for the policy doves (209K versus Briefing.com consensus 220K). It showed payroll growth that was weaker than expected, ... More
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