From Bloomberg (link)
The European Commission backed China’s policy of switching to a more flexible exchange-rate system at its own pace, rebuffing U.S. calls for faster steps to boost the yuan, according to a confidential document.
The commission, the European Union’s Brussels-based economic watchdog, warned that sudden moves to strengthen the Chinese yuan as demanded by some U.S. officials could further weaken the dollar against the euro.
“China should introduce greater exchange-rate flexibility in a gradual manner,” according to a document obtained by Bloomberg News. A gradual move would lessen the risk of the dollar, euro and Japanese yen “overshooting” on the markets.
