No major trading partner, including China, manipulated their currencies to keep them undervalued, the U.S. Treasury said Thursday in its semi-annual report on exchange rates. Warning that the U.S. cannot be the only engine of demand, the U.S. urged countries with large trade surpluses - Germany, China, Japan, and South Korea - to enact policies to boost demand among their consumers. China has made "real progress" the report said, but added that the policymakers need to "durably curb" activities in foreign exchange markets, including at times when there is market pressure for appreciation. A bipartisan group of lawmakers is asking the Obama administration to include rules on currency in upcoming legislation to prepare the way for a trade agreement with a dozen Pacific economies. But the White House is resisting, worried that the language could kill the chances of reaching a trade deal.
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