China's yuan has hit a record high against the US dollar after the US Treasury¹ department said the Chinese currency was undervalued but not manipulated.

美国财政部称，中国货币价值被低估而非被操纵，人民币对美元汇率因此达到史上新高。

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The yuan's pricing has been a contentious issue between China and the developed economies
The People's Bank of China (PBOC) fixed³ the yuan's mid-point at 6.4856 against the US dollar on Monday.

China has been accused by the US and other developed economies of keeping the value of its currency artificially（人为地） low to boost its exports.

China is the world's biggest exporter.

The US and other major economies have said that China's policy of keeping the value of its currency low gives an unfair advantage to its manufacturers.

There have also been concerns that China's currency policies have also been responsible in part for big trade imbalances with its trading partners.

'Negative connotation'

There have been repeated calls in the US to label China a currency manipulator, given Beijing's currency policies and reluctance⁴ to let the yuan trade freely.

China however has maintained that while it is willing to allow the yuan to appreciate（增值，涨价） , its pace has to be gradual.

It said that a sudden rise in the yuan will not only be detrimental⁵ to its export sector⁶ but will also have a negative impact on the overall economy.

In its report released on Friday, the US Treasury Department said that although China's currency was undervalued, the country was not a currency manipulator.

Analysts⁸ say that while there has been considerable pressure within the US, it seems that the Treasury Department had taken on board China's concerns about a sharp rise.

"Manipulation carries negative connotation. The intention is to mislead", said Peter Esho, chief market analyst⁷ at City Index.

"They are acknowledging that their (China's) intentions aren't to mislead," he added.