Treasury Secretary Timothy F. Geithner today reaffirmed the U.S. commitment to a “strong dollar” and said the country won’t weaken the currency to gain an advantage over its trading partners.
“Our policy has been and will always be, as long as at least I’m in this job, that a strong dollar is in our interest as a country,” Geithner said in remarks at the Council on Foreign Relations in New York. “We will never embrace a strategy of trying to weaken our currency to try to gain economic advantage.”
Geithner’s comments, in response to a question about the dollar’s recent decline, show his efforts to reassure investors that the U.S. will restore long-term economic growth and stability. The Treasury chief said the U.S. must earn investor confidence “over time” and said there’s “fundamental” trust in the U.S. ability to cope.
The dollar dropped for a sixth day against the euro, matching the longest losing streak since May 2009, on speculation the Federal Reserve will consider measures to keep yields low to support the U.S. economy. The greenback also fell to almost the lowest level since August 2008 against the currencies of major U.S. trading partners
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said Treasuries “have little value” because of the growing U.S. debt burden, in a March note on his company’s web site. He said the U.S. will experience inflation, currency devaluation and low-to-negative interest rates after accounting for consumer-price gains if it doesn’t reform its entitlement programs, he said.
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