(Adds details Trump China campaign pledge, yuan's value)
BATON ROUGE, La. Dec 9 U.S. President-elect
Donald Trump on Friday said that China and other countries often
devalue their currencies as the U.S. economy improves, vowing to
combat currency manipulation and the dumping of foreign products
into U.S. markets below cost.
"We'll renegotiate our trade deals, stop the product dumping
and the currency manipulation which is a disaster for our
country," Trump said at a rally in Baton Rouge, Louisiana.
"Every time we get going, China and others, they just knock the
hell out of the value of their currency and we have to go back
and back, and it just doesn't work, folks."
China's yuan hovered at a near 8-1/2-year low of about 6.9
to the dollar on Friday. China's central bank has been selling
dollars to keep the yuan from falling further in response to
capital outflows, reporting on Wednesday that its foreign
exchange reserves fell by $69 billion in November - a fifth
straight month of losses - to around $3.05 trillion.
A surge in the dollar and U.S. bond yields since Trump's
election a month ago also has exacerbated the yuan's fall.
Trump, however, stopped short of repeating his campaign
pledge to formally declare China a currency manipulator after he
takes office on Jan. 20. Such a declaration by the U.S. Treasury
Department would launch a series of demands for negotiations
with Beijing to try to remedy the situation to improve trade
Economists, including those at the International Monetary
Fund, have widely viewed China's efforts to prop up the yuan's
value over the past year as evidence that Beijing is no longer
keeping its currency artificially low to make Chinese exports
(Reporting by Steve Holland in Baton Rouge and David Lawder in
Washington; Editing by Jonathan Oatis)