The U.S. will remove China from a list of countries considered currency manipulators, as the two countries come together this week to sign a phase one trade deal, a person familiar with the matter told CNBC. The Treasury Department formally made the designation five months ago, after U.S. officials complained that China was weakening its currency to claim an unfair trade advantage. Strategists say the move higher has been due to optimism over China and the global economy now that the trade deal is about to be approved. Emerging market currencies have been moving higher, including the Mexican peso, the Brazilian real, and the Indian rupee. China’s currency is at the highest level to the dollar since Aug. 1. The onshore currency, which trades in China, was at 6.8792. The offshore currency, which trades in Hong Kong and is more impacted by international traders, was at 6.8792 to the dollar, its highest level since July 29. The phase one deal means no new tariffs will be put in place and some of the existing ones will be reduced. The deal is expected to be signed in Washington Wednesday.