The Fair Currency Coalition (FCC) is urging the US Congress to pass a new act which it says would boost jobs by discouraging countries like China from undervaluing their currencies.

Thanking a number of US Senators for their support for the Currency Exchange Rate Oversight Reform Act of 2011, the FCC encouraged the Senate to pass the measure “immediately”.

The body said the new act would help US jobs and investment by allowing companies and workers to petition the US Department of Commerce to impose countervailing duties against trading partners who undervalue their currencies to gain an unfair trading advantage.

These duties, the FCC said, would offset the impact of imports from countries who effectively subsidise exporters by keeping currency values down.

The measure comes after the release of a study earlier this week which suggested that the growing US trade deficit with China had cost 2.8m jobs over the past decade, with the undervaluation of the renminbi against the dollar identified as a key cause.