Tim Geithner: US not attempting to weaken dollar

19 October 2010

US Treasury secretary Tim Geithner has refuted claims that America is attempting to weaken the value of the dollar in order to improve the nation's economic performance.

Fears are growing about countries across the world engaging in a so-called 'currency war' as arguments about exchange rate policies escalate, reports the Financial Times.

Mr Geithner said the strategy of weakening the dollar is not one that the government wants to pursue.

"It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity and competitiveness," he stated.

He added that he does not believe it to be a "viable [or] feasible strategy".

The US has recently accused China of undervaluing the yuan to aid the performance of its exporters, with the White House calling for the nation to take steps to address the issue, reported BBC News.

By Gary Cooper

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