US delays release of currency report, Beijing breathes easy

Washington: US treasury secretary Timothy Geithner said Saturday the US would delay a report to Congress on the currency policies of major trading partners, including China, and in the process would appear to have allowed Beijing breathing space in which this country, the world's top exporter, can allow its currency to rise in value. This easing of pressure on a nation that many around the world now openly challenge as a currency manipulator has not been welcomed by some US lawmakers and business groups who continue to push for a more aggressive approach.

Making his comments Geithner cited a spate of high-level meetings between China and the US, which he said, "...are the best avenue for advancing US interests at this time."

In a carefully worded statement Geithner said the Asian giant was relying on "currency intervention" and must move to a "more market-oriented exchange rate."

The Treasury is due to issue its semi-annual report on 15 April.

The statement from the Treasury is perceived as a move to ratchet down the rhetoric which has been gathering pace both domestically and internationally over the People's Republic of China's blatant manipulation of its currency, which is artificially maintained at low levels in a bid to provide its manufacturers undue advantage in the market place.

Predictably, Beijing has blustered its way through the rising tide of criticism saying it would not bow to outside pressure on the issue.