London, March 5 (Bloomberg) -- The dollar fell to $1.10 per euro for the first time since March 1999 after Treasury Secretary John Snow said he was ``not particularly concerned'' about the U.S currency's weakness. The dollar dropped to $1.1001 at 8:30 a.m. in London, its weakest level since March 19, 1999, from $1.0925 yesterday. The dollar ``is going to rise and fall,'' Snow said, raising speculation the administration is abandoning the preference for a strong currency it has held since Robert Rubin was Treasury secretary in the mid-1990's. Though he voiced support for a strong dollar when he was appointed in January, he said this must be based on ``sound, pro-growth economic policies.''
``There are a lot of people out there who believe the U.S. is happy with a weak dollar,'' and Snow's comments reinforce that speculation, said Ian Gunner, head of foreign-exchange research at Mellon Bank. ``I think he made an honest mistake,'' and that there's no deliberate effort to weaken the currency. The dollar has dropped as concern about a slowing U.S. economy, falling returns on stocks and bonds and the possibility of a U.S.-led war against Iraq dim the attractiveness of investing in the world's biggest economy. Snow hasn't withdrawn his support for a strong dollar, Treasury spokesman Tony Fratto said. At a hearing confirming his position as Treasury secretary in January, Snow made clear the U.S. has ``a consistent policy of favoring a strong dollar, and sound, pro-growth economic policies and a commitment to free and open markets are the foundation for a strong dollar,'' Fratto said. ``The secretary's position hasn't changed.'' //www.quote.bloomberg.com