China fends off US currency claims at G20

Investors are trimming bets on renminbi gains following the G20 summit in Seoul where China rebuffed US criticism of its currency regime, Bloomberg reported. Beijing responded to US calls for faster renminbi appreciation by claiming that the Fed’s decision to inject US$600 billion into the economy may destabilize the global financial system. "The major reserve currency economies should adopt responsible policies, thus easing and gradually removing the fundamental problems behind foreign exchange liquidity," President Hu Jintao said. Following the G20 summit, US President Barack Obama told the Asia-Pacific Economic Cooperation summit in Yokohama, Japan, that "no nation should assume that their path to prosperity is simply paved with exports to America." Presidents Hu and Obama are due to meet in Washington D.C. early next year.