US critics claim China is keeping the yuan low to boost exports

"[China] has agreed that it is in their interest to adopt greater exchange rate flexibility," Mr Snow said on Thursday.

Mr Snow's comment mollified US senators who had pushed for punitive measures against imports from China.

But a spokesman for the People's Bank of China insisted that "with regard to the yuan's revaluation, we never make predictions and there is no timetable".

Hopeful and optimistic

Senators Charles Schumer and Lindsey Graham announced their decision to delay a vote on tariffs on imports from China after meeting Mr Snow and Federal Reserve chairman Alan Greenspan.

Mr Greenspan and Mr Snow comforted US senators

"We have faith that this administration will negotiate seriously with the Chinese," Mr Schumer said.

"While we can't be certain that any deal will happen, we are very hopeful and optimistic that it will."

Mr Graham added: "By showing flexibility by delaying this vote, we are hopeful that the progress we have seen so far will continue and we will get a resolution that is a win-win for both countries."

Textile row

US policymakers have been considering legislation that would slap tariffs of up to 27.5% on Chinese products if Beijing fails to take action to realign its currency.

US manufacturers and politicians have been calling for action amid accusations that China is manipulating the yuan to keep it low and boost exports.

Chinese textile exports have surged since the end of global quotas at the start of the year, squeezing US manufacturers.

They claim China's practise of pegging the yuan to the dollar undervalues it by as much as 40% - leaving US firms unable to compete and leading to 16,000 job losses in the industry so far this year.

The situation has prompted the US to impose import curbs on a number of goods. In retaliation, China scrapped more than 80 export tariffs.

Last week, Mr Greenspan and Mr Snow urged the Senate to be patient with China, warning that any sanctions would be a mistake and may put the US economy at risk.