Paulson says strong dollar in US interests

OSAKA (AFP) — US Treasury Secretary Henry Paulson said Saturday a strong dollar was in his nation's interests and solid US economic fundamentals would support the currency in the long term.

"With regard to the dollar, my view has not changed: a strong dollar is in our nation's interest," he told a press conference after a meeting of Group of Eight finance ministers here.

Traders say that Washington appears to have been ratcheting up the rhetoric recently to talk up the US currency so as to keep a lid on inflation and limit the need for higher interest rate hikes that could stifle economic growth.

"Our economy is going through a tough period right now but that we've got strong long-term fundamentals. I believe that those fundamentals will be reflected in the currency," Paulson said.

He said the G8 had discussed foreign ...