U.S. Says Yuan Undervalued; China Not Manipulating Currency

A report from the U.S. Treasury Department avoided naming China as a currency manipulator, saying instead that the yuan is "undervalued."

The report said that the recent Chinese decision to end the peg to the dollar was a "significant step," and pledged to monitor the Chinese currency in the next three months, Bloomberg News reported.

"What matters is how far and how fast the renminbi appreciates," Treasury Secretary Timothy F. Geithner said, using another name for China's currency.

The report, initially due April 15, concluded that none of America's major trading partners are manipulating their currencies. The last country to be labeled a currency manipulator was China, in 1994.