The US Treasury has labelled Switzerland and Vietnam currency manipulators, escalating tensions with the two countries in the waning days of the Trump administration.
Washington could take punitive action unless “bilateral engagement” satisfies its concerns, even after the dollar has itself dropped to more than two-year lows.
In a statement accompanying its semi-annual foreign exchange report, the US Treasury said the two countries had held their currencies lower to prevent “effective balance of payments adjustments” and in the case of Vietnam, “for gaining unfair competitive advantage in international trade”.
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