30 May 2003, 09:09  Bush to tell G8 US favors strong dollar policy

WASHINGTON, May 29 - U.S. President George W. Bush said on Thursday he would tell leaders at a Group of Eight summit in France that the United States favors a strong dollar policy. "It's very important that we do spend time talking about our respective economies," Bush said in an interview with foreign journalists on the eve of his trip to Europe. "I will tell them that here at home we have got sound monetary and fiscal policies ... I will reiterate our strong dollar policy." Bush also reaffirmed U.S. support for a strong dollar in talks with Japanese Prime Minister Junichiro Koizumi last weekend.
A Japanese official said Koizumi told Bush a strong dollar was "in the interest of both our economies." The official said Bush made his remarks after Koizumi raised the issue of the yen's recent strength against the dollar. The value of the U.S. dollar has been falling against other major currencies, notably the euro and the Japanese yen, for several weeks, with many in the market questioning the Bush administration's commitment to a strong dollar. The White House has denied a shift in dollar policy. But Treasury Secretary John Snow said earlier this month that he opposed intervention. He noted that the dollar's weakness helped U.S. exports and that a currency's strength should be a factor of economic fundamentals -- leaving markets wondering whether the administration does not mind a weaker greenback.//

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