Two days after China announced more flexible changes in the currency, yuan’s value rose by 0.43 percent on Monday. Japan, Thailand, Germany and US praised the move.
"It's a genuine attempt by China to address its exchange rate mechanism. It takes an irritant off the table in US-China relations," stated US Ambassador Jon Huntsman. He said that a stronger yuan would increase U.S. exports to China and help spur job creation in the United States.
But Mr. Huntsman also pointed out that there is lagging improvement in restoration of military ties between US and China. China down plays the significance of the new move, saying that it doesn't mean a "dramatic appreciation."
China fixed the value of the yuan in July 2008 to prop up its exports as global demand began to falter because of the global economic slowdown.
On Saturday, China said it will let a basket of currencies determine the value of the yuan. The US has repeatedly pressed China for a more flexible exchange rate to address the imbalance.
Some information for this report was provided by Asia News, China Currency Exchange, Wall Street Journal and The New York Times