US may probe China's currency peg

After turning down similar requests last year, the Bush administration said it would review a new request from Congress to launch a year-long investigation into whether China's currency peg is an unfair trade practice, Reuters reported, citing a spokesman from the U.S. Trade Representative's office. The administration has 45 days to decide if it wants to launch the probe. The New York Times reported that one senator has threatened to put a hold on President Bush's US trade representative nominee unless the White House supports a bill that would make it easier to penalize China for under pricing its exports. Republicans have broken ranks with the administration by supporting a bill that would impose tariffs on all Chinese imports unless China loosens its currency peg.