President Obama today urged Chinese President, Hu Jintao to allow his nation’s currency, Yuan to rise in value following strains over trade between the two economic giants.

Mr. Obama while speaking after a summit in Beijing, made the U.S. expectations public. While voicing the U.S. expectation, that China will let its currency resume its climb against the dollar soon, the U.S. President was cautious to stop short of raising concerns that China is keeping its currency artificially low to boost exports.

The Chinese government keeps a tight leash on it's currency exchange rates. The rates for Yuan (CNY) have moved in a narrow range of 6.78 (August 27' 09) to 6.86 (July 23' 09) against the USD, which provides immense trade benefit to Chinese exporters.

With the unemployment rate peaking at a 10.2% level, Obama is also under pressure to ensure protection of domestic industries against Chinese onslaught.

The Chinese President while avoiding any direct reference to the currency issue, conveyed Beijing’s displeasure in a camouflaged fashion at new US tariffs imposed on Chinese-made products including tyres, steel pipes among others.

The U.S. President is also set to meet the Chinese PM Wen Jiabao, tomorrow where he is likely to discuss the issue of allowing Yuan to appreciate against the US Dollar. IMF MD, Dominique Strauss-Kahn, also raised similarsentiments today in Beijing when he said that a stronger Yuan would be in the interests of China and the world.

Industry analysts also feel that Yuan should be let to move in lines with the forces of demand and supply, a belief which is very unlikely to be echoed in any fashion by the Communist regime in Beijing.