China will not revalue its currency to rectify bilateral trade imbalances, Zhou Xiaochuan, governor of the People's Bank of China, said on Tuesday despite US pressure to use the exchange rate to make Chinese exports less competitive.

Mr Zhou used an interview with the People's Daily, the mouthpiece of the communist party, to clarify the bank's monetary and economic policies amid continuing speculation of an imminent change in interest rates and the currency. His remarks will reinforce views that China feels no sense of urgency to revalue its currency and that the government has not settled on a new exchange rate mechanism. China has been under pressure to revalue the renminbi fixed to the US dollar for a decade from Washington and Brussels, which say it gives Chinese exporters an unfair advantage.