Speaking ahead of a trip to Beijing, Mr Paulson called on China to maintain its policy of encouraging the renminbi to appreciate.
Market expectations for the renminbi a year from now indicate it could weaken to Rmb7.30 against the dollar from its current level of Rmb6.8871. On Monday, the dollar rallied 0.7 per cent against the renminbi, rising from Rmb6.8346 – the biggest one-day appreciation for the dollar since the renminbi floated in 2005.
The shift led some analysts to conclude China was seeking to compensate for the global economic slowdown by devaluing.
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