Yet since Beijing loosened its peg to the dollar more than three years ago, the yuan has actually fallen against the euro, pushing the European currency up about 2.6% against the yuan since 2005.

In foreign-exchange markets, the euro was at $1.2898, compared with $1.2879 in late New York trade Tuesday, and at 109.89 yen from 110.12 yen.

With the dollar falling against the euro, Europeans are watching with alarm as their companies come up against an even greater Chinese currency advantage.