UPDATE 1-Geithner stresses strong dollar's global role

Thu Nov 12, 2009 12:40pm GMT
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* Tells Asia strong dollar important to U.S.

* Repeats U.S. consumers can't fuel budding recovery

* No comment on whether U.S. sees China forex shift (Recasts lead, adds quotes, comments on China currency)

By Glenn Somerville

SINGAPORE, Nov 12 (Reuters) - U.S. Treasury Secretary Timothy Geithner offered fresh reassurances to Asian nations that the Obama administration was committed to a strong dollar and to actions aimed at bolstering its value.

"It's very important to the United States that we have a strong dollar," he said at a news conference at the Asia-Pacific Economic Cooperation forum, or APEC in Singapore on Thursday. "As growth recovers, (we will) move our fiscal position back into balance."

Soaring budget deficits, which hit a record $1.4 trillion in fiscal 2009 and will likely be near that in 2010, have weakened the dollar because of huge U.S. borrowing to meet the U.S.'s day-to-day spending needs.

For a graphic on the dollar's downturn, click:

here  Continued...

 
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