US closely watching Chinese steps on currency: White House

WASHINGTON: The US is closely watching steps taken by China on revaluation of its currency, that is highly undervalued, the White House has said, insisting that the artificially low exchange rate of yuan was a matter of concern.

The Obama Administration believes that China needs to take steps on rectifying its currency value, White House Press Secretary Robert Gibbs said.

"... we are watching and evaluating the measures and the steps that they take," he added.

The House of Representatives recently passed a legislation pressing for retaliatory measures against the currency manipulation by China.

"We continue to believe that China must take steps," Gibbs said.

"I think the legislation demonstrates that there is a bipartisan recognition and recognition at both end of Pennsylvania Avenue, the concern that we have, for China's currency," he said in response to a question.

At a news conference, Congressman Sander Levin said that the Congress bill on Chinese currency was the first concrete action to fight back against China's rigging its currency.

"What they do is to lower the cost of their goods and their exports and raise the cost of ours," he said.

"China's subsidies, their currency manipulation, all of this is a real threat," he said.