Financial Times FT.com

Renminbi’s tight rein a damper on US hopes

By Mure Dickie in Beijing

Published: July 22 2005 18:42 | Last updated: July 22 2005 18:42

China kept its newly unpegged and revalued currency on a tight rein on Friday, with the renminbi ending the day slightly lower against the dollar.

The decline appeared intended by Beijing to cool hopes that the policy change would open the way to the type of significant appreciation Washington has been demanding. US critics say the renminbi is undervalued by more than 20 per cent and gives China an unfair trade advantage.

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