U.S. manufacturers have long contended that China is manipulating its currency to gain trade advantages. A weaker Chinese renminbi and a weaker Japanese yen make goods from those two countries cheaper for American consumers and U.S. goods more expensive in those markets.
Treasury said it would discourage South Korea's government from intervening in currency markets unless such action is needed to stabilize disorderly markets. Seoul intervened to sell its own currency, the won, this year and last year to keep the value of its currency from rising.
The Obama administration has now declined to brand China as a manipulator for 10 straight reports. It has argued that it the U.S. is more likely to make progress on economic issues through negotiation than confrontation.
America's trade deficit with China has for years been the largest with any country.
The last time the United States named any country as a currency manipulator was in 1994 when the Clinton administration made that accusation against China.
Latest World News
