Hu Tells Obama China Will Follow Its Own Path on Yuan

President Barack Obama urged China to move toward a “more market-oriented exchange rate,” and President Hu Jintao told him the country wouldn’t yield to “external pressure” in deciding when to adjust the yuan.

Any currency revaluation by China must be “based on its own economic and social-development needs,” China’s official Xinhua news agency cited Hu as saying at yesterday’s meeting with Obama in Washington. Yuan forwards fell the most in three weeks as the remarks spurred speculation the currency won’t resume gains in the short term.