To explain his sudden change of heart on the issue, Trump told the Wall Street Journal that taking the step could wreck his master plan to get China to handle the North Korea crisis and anyway the Chinese government had not been manipulating its currency for months.
Sparing China from being labeled a currency manipulator would be the latest indication that Trump's rhetoric on trade as the Republican candidate past year was harsher than the policies he's establishing as president.
"President Trump backed off because he realized that China was no longer a currency manipulator", said Bergsten, according to a transcript of a recent interview with the think tank.
TRUMP WATCH: Trump said he won't declare China a currency manipulator, dropping a key campaign promise.
Also this week, Trump reversed his view of the Export-Import Bank, a government agency that provides loan guarantees to finance US exports.
"The official credited China's abstention to the summit where [Trump] forged an important relationship with Xi", the pool report stated.
"Both sides seem to have achieved some of the objectives they sought from each other's concessions", says Cheng Xiaohe, a North Korea expert at People's University in Beijing. "On the issue of RMB (renminbi) exchange rate, our position is consistent and clear, we will press ahead with the reform of the formation regime of our RMB exchange rate and we will maintain the stability of the RMB at an adaptive and equilibrium level".
China was a favored target of Trump's on the campaign trail.
Most economists agree that China has manipulated its currency in the past but has not continued the practice.
From Chinese currency manipulation to his choice to head the Federal Reserve, Trump contradicted statements he'd made during the presidential campaign.
North Korea blasts U.S. strikes on Syria, says justify nukes: state media
South Korean and US forces are also involved in annual joint military drills that run until the end of April. Japanese Prime Minister Shinzo Abe has appreciated the strong United States commitment to global security.
Eswar Prasad, a professor of Global trade at Cornell University, said it was striking that a sitting president would comment so directly on the value of the dollar. In February, China banned coal imports from North Korea for the rest of the year.
The Treasury created a new monitoring list in April after Congress passed a law requiring closer scrutiny of foreign-exchange regimes.
Chinese analysts say Beijing is receptive to a "transactional" USA president.
Escalating fears of a new weapons test by North Korea also kept investors on edge, as a USA carrier group sails towards the area.
Bonnie Glaser, a China expert at the Center for Strategic and International Studies, said the development "bodes well for co-operation between the USA and China".
ANALYST VIEWPOINT: "After a few weeks of relative calm, the "Trump hurricane" is back to disrupt the tranquility in the currency markets", said Margaret Yang of CMC Markets in a commentary. "That is the real litmus test".
"The best way to get China to co-operate with North Korea is to be tough on them with trade, which is the No. 1 thing China's government cares about", Senate Democratic Leader Charles Schumer of NY said.
Trump also said in an interview at the White House with The Wall Street Journal that he would prefer that the Federal Reserve keep interest rates relatively low. "When the president fails to label them a currency manipulator, he gives them a green light to steal our jobs and wealth time and time again".
"The dollar's already under pressure, so I think any excuse for further pressure is likely to bring the greenback even lower", Lien said.