China's central bank governor said Sunday that the U.S. dollar could grow "too strong" and prompt capital flows out of China and other nations. Speaking at an annual forum in the Chinese city of Boao, People's Bank of China Gov. Zhou Xiaochuan said monetary easing by major central banks was driving up the U.S. currency, while adding that he saw "more room" for China to further ease policy if the economy remains soft and inflation continues to weaken, according to comments carried by Reuters. Zhou also warned about the threat of deflation in China, saying the slowdown in consumer-price gains was a "little too quick," Dow Jones Newswires reported.
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