US Treasury Secretary John Snow has reiterated the US commitment to a strong dollar, as the greenback hit another record low against the euro.
He told the Royal Institute of International Affairs in London that US policy "is for a strong dollar".
But his comments made little impact on the markets, and by 1036 GMT the euro was worth a record $1.303.
European policymakers have called the dollar's slide "brutal", blamingthe euro's strength for dampening growth.
'Shared responsibility'
"The question was, why do I support a strong dollar policy? The answer is because it is our policy," Mr Snow said.
"Our dollar policy remains unchanged because a strong dollar is in both the national and international interest."
He pledged to curb the US massive budget deficit - but said the size of the current account deficit at the moment was evidence of "economic strength".
But while admitting that the deficits were hampering growth elsewhere in the world, he said that a "shared responsibility" among nations is needed to solve the problem.
He praised China, saying it had moved towards market discipline for its currency.
He said China's decision to raise two key interest rates last month for the first time in nine years "represents significant steps consistent with China's move to a flexible and market-based exchange rate".
Analysts point out despite the positive comments on the dollar, President George W Bush's administration had done little to stop the currency's slide.
Some analysts maintain the US is secretly happy with a lower dollar which helps makes its exports cheaper in Europe, thus boosting its economy.
They also say the dollar is unlikely to strengthen significantly, until the US economy improves.
http://news.bbc.co.uk/1/hi/business/4019023.stm
He told the Royal Institute of International Affairs in London that US policy "is for a strong dollar".
But his comments made little impact on the markets, and by 1036 GMT the euro was worth a record $1.303.
European policymakers have called the dollar's slide "brutal", blamingthe euro's strength for dampening growth.
'Shared responsibility'
"The question was, why do I support a strong dollar policy? The answer is because it is our policy," Mr Snow said.
"Our dollar policy remains unchanged because a strong dollar is in both the national and international interest."
He pledged to curb the US massive budget deficit - but said the size of the current account deficit at the moment was evidence of "economic strength".
But while admitting that the deficits were hampering growth elsewhere in the world, he said that a "shared responsibility" among nations is needed to solve the problem.
He praised China, saying it had moved towards market discipline for its currency.
He said China's decision to raise two key interest rates last month for the first time in nine years "represents significant steps consistent with China's move to a flexible and market-based exchange rate".
Analysts point out despite the positive comments on the dollar, President George W Bush's administration had done little to stop the currency's slide.
Some analysts maintain the US is secretly happy with a lower dollar which helps makes its exports cheaper in Europe, thus boosting its economy.
They also say the dollar is unlikely to strengthen significantly, until the US economy improves.
http://news.bbc.co.uk/1/hi/business/4019023.stm
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