Forex Flash: US treasury labels Chinese renminbi as undervalued – Deutsche Bank

FXstreet.com (Barcelona) - Ahead of such events like the G20 meeting later this week, “We can expect more rhetoric about currency wars this week as political and business leaders gather in Washington for the World Bank/IMF spring meetings beginning this Friday.” notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

Over the weekend, the US treasury fired the first shot, urging Japan to "refrain from competitive devaluation" in its semiannual foreign currency report to congress. The Treasury report also urged Japan to adhere to international commitments "to remain oriented towards meeting respective domestic objectives using domestic instruments". The Treasury found that no country met the legal standard to be designated a "currency manipulator" but said that China's renminbi "remains significantly undervalued"