O'Neill Doesn't Think Dollar Too Strong
Jul 22 11:08am ET
WASHINGTON (Reuters) - U.S. Treasury Secretary Paul O'Neill said on Sunday he did not think the dollar had risen too much and he reiterated that a strong American currency was in the country's best interests.
O'Neill was asked on Fox News Sunday, "Do you think that perhaps (the dollar) has gotten too strong and should be weakened a bit ...?" He interrupted his questioner to say: "No, No."
Noting that the issue was contentious, the Treasury chief then repeated his mantra: "I believe a strong dollar is in the interests of the United States."
The Bush administration recently has come under political pressure to try seek agreement with other nations to weaken the dollar. In strongly worded letters to President Bush, powerful groups representing labor, manufacturers and farmers urged him to raise the topic at G8 summit in Genoa, Italy.
Speaking to a group of European reporters, Bush said markets should be allowed to determine the value of the dollar. Some in the markets viewed that as a deviation from the standard line given by Treasury that the U.S. favors a strong dollar.
Earlier on Sunday, Bush elaborated on his comments about the dollar, saying "... if the markets are allowed to function, the dollar will reach the appropriate level."
He added, "There are ... some who want us to weaken the dollar within our country and that is not the role, in my judgement, of the country. The market ought to do that, not the nation." To try to hammer home his intention to remain consistent on the dollar policy, O'Neill has often pledged to rent out New York's Yankee Stadium and hire a brass band should that policy change.
He repeated that line yet again in the Fox interview.
"I said with some considerable thought and intent that when we decide to change our exchange rate policy, I'm going to hire out Yankee Stadium and a brass band so that everyone can be sure we've actually decided to change," O'Neill said. "Until then, anything that anyone might say, notwithstanding, we're not going to change the strong dollar policy."
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