The Obama administration said on Tuesday that China's currency remained 'significantly undervalued', but stopped short of labeling the world's second-biggest economy a currency manipulator.

Although

China's currency is facing strong downward pressure in 2012 as the country's once surging growth rates slow amid a stalling global economy and signs of capital flight after years of inflows.

It is a

China may need a back-up plan to stop economic growth being cut short by a surprise dip in demand at home and abroad that suggests monetary policy easing steps taken since the final quarter of last ye

China's central bank cut the amount of cash that banks must hold as reserves on Saturday, freeing an estimated 400 billion yuan for lending to head-off the risk of a sudden slowdown in the world's sec

US Treasury Secretary Timothy Geithner on Thursday urged China to allow further appreciation of its yuan currency against the dollar at the start of talks between the world's two biggest economies.

"

Ahead of the next week's Beijing talks, the United States has said China needs to speed up reforms in its state-dominated banking system and correct the value of its currency.

"Financial sector refo

China's central bank said Saturday it would widen the yuan's trading band against the dollar from 0.5 percent to 1.0 per cent, loosening its grip on the Asian giant's tightly controlled currency.

The

China took a milestone step in turning the yuan into a global currency on Saturday by doubling the size of its trading band against the dollar, pushing through a crucial reform that further liberalise

China's yuan could become a reserve currency in future if the country undertakes further economic reform, International Monetary Fund managing director, Christine Lagarde, said in a speech on Sunday.

The Chinese yuan weakened 22 basis points to 6.3235 against the US dollar on Thursday, according to the China Foreign Exchange Trading System.

This marks the fourth straight day of decline against th