Dollar policy

U.S. Treasury Secretary John Snow gave no signal of a shift in the U.S. dollar policy on Nov. 17 after it slumped to yet another low against the euro.

He maintained steadfast language in recent weeks when asked about the dollar, apparently ruling out any U.S. support for intervention to stem the slide in the currency.

Snow has denied the argument that Washington favors a weaker currency to help exports and the economy.

In addition, G20 policymakers made no mention of the dollar’s slide in a statement issued at the end of their meeting in Berlin, reinforcing the view that major nations have accepted the need for a weaker dollar to correct the U.S.’s trade gap.

The G20’s call for more Asian currency flexibility was seen putting more downward pressure on the dollar, according to news reports.

Financial markets had been speculating the G20, which includes the Group of Seven (G7) rich nations and big developing countries such as China, might create the kind of international accord the G7 struck in 1986 to manage major currencies.