As the US Treasury Secretary Henry Paulson started his semi-annual talks with the governor of the Bank of China and other officials, the Chinese currency, the yuan, reached its highest level against the dollar since July 2005. That is when Beijing ended the yuan being pegged to the US currency. It has risen by 20% since that time. That means the meetings will focus more on energy and the environment than exchange rates, a subject that has caused tensions between Washington and Beijing in the past.
Currency tensions reduced between US and China