DJ Tsy Paulson Reiterates Strong Dlr In Best Interest Of US -CNN

NEW YORK (Dow Jones)–U.S. Treasury Secretary Henry Paulson repeated
Wednesday that a strong dollar is in the nation’s best interest, saying that
the long-term fundamentals of the U.S. economy stack up favorably against other
countries.

“A strong dollar is our nation’s interest, and it’s something I’ve been very,
very supportive of,” Paulson said in an interview on CNN.

“Our economy’s got some ups and downs. It’s going through a tough period
right now, but our long-term fundamentals are strong,” he added. “I think the
long-term fundamentals are going to be reflected in the price of our currency.”

While some analysts have cited the dollar’s weakness as a key factor behind
record-high oil prices - crude is priced in dollars - Paulson noted that oil
prices in terms of other currencies, such as the euro or the yen, have risen
sharply as well.

Paulson said supply-and-demand factors have been the primary driver behind
the record run in oil prices, and he appeared cool to proposals by GOP
presidential candidate John McCain and others to suspend the federal gasoline
tax during the peak summer driving season.

“It doesn’t avail itself of short-term solutions,” Paulson said of
record-high gasoline prices in the U.S.