Trump acknowledges China has not been weakening currency

Donald Trump has stopped short of labelling China a currency manipulator, marking a change in stance from his position during last year's presidential campaign.

The US President acknowledged China has not been intervening to weaken its currency, and said such a claim could jeopardise his talks with Beijing regarding North Korea.

Mr Trump said "they’re not currency manipulators". 

A spokesman for the US Treasury later confirmed the decision not to accuse China of currency manipulation in its upcoming report. 

This marks a shift in Mr Trump's position since his presidential campaign in which he said he would brand the country a manipulator on his first day in office, claiming China was manipulating its yuan to gain the upper hand in trade, and tabled plans to reduce Chinese imports into the US. 

The US last branded China a currency manipulator in 1994.

Mr Trump also cautioned that the dollar was "getting too strong" and would eventually hurt the economy.  

Mr Trump said he would prefer the US Federal Reserve keep interest rates low. “I do like a low-interest rate policy, I must be honest with you,” Mr Trump said.

"I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting—that will hurt ultimately,” he added.