The U.S. Treasury Department said on Wednesday that China cannot be ruled as a currency manipulator, but highlighted the need for sustained progress toward a market-driven exchange rate.
"The gradual appreciation of the RMB this summer and low apparent levels of intervention indicate some renewed willingness by the authorities to allow a stronger domestic currency and to reduce intervention in line with Strategic & Economic Dialogue commitments," the department said in its Semi-Annual Report to Congress on International Economic and Exchange Rate Policies.
"Even so, important metrics continue to indicate that the RMB exchange rate remains significantly undervalued, highlighting the need for sustained progress toward a market-determined exchange rate," it said.