China’s president warns that markets can be threatened by wildly fluctuating currencies

China’s president warns of fluctuating currencies

TORONTO — China’s president says wildly fluctuating currency exchange rates can threaten world financial markets.

Hu Jintao (hoo jin-tow)’s remarks Sunday at a summit of the world’s economic powers seem to be a jab at critics of Beijing’s currency policy.

Hu didn’t directly address complaints that China’s undervalued currency gives Chinese exporters an unfair advantage and swells the country’s trade surplus with the U.S. and others.

But Hu warns of the risks when exchange rates of major currencies fluctuate greatly — and those swings affect financial markets.

China announced before the summit that it would start allowing its currency to rise in value against the dollar. Critics have said Beijing’s cautious move doesn’t go far enough.