US Treasury's Brainard-China yuan still undervalued

WASHINGTON, July 26 (Reuters) - China's yuan currency remains clearly undervalued and the U.S. Treasury Department is closely monitoring it, the Treasury's point person on international affairs said on Monday.

Lael Brainard, Under Secretary for International Affairs, said during a question-and-answer session at the Peterson Institute that Beijing's recent move to end a peg between its yuan CNY= and the dollar showed China was letting market forces play a greater role.

But she noted Treasury's "clear conclusion is that it remains undervalued," though she declined to say by how much.

Brainard also said last week's European bank stress tests had provided "very detailed information bank-by-bank on exposure" to risk, which will help stabilize financial markets by increasing transparency.