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Treasury Secretary Mnuchin says he does not advocate a weak dollar policy

Key Points
  • "I think the dollar is the reserve currency of the world. It's in our interest; we want to maintain it," Mnuchin tells CNBC's "Squawk Box."
  • "A stable dollar is very important and over the long-term period of time I do believe in a strong dollar, which signifies a strong U.S. economy, a strong stock market and particularly because of the president's economic policies."
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Mnuchin: I will not advocate a weak dollar policy in the near term

Treasury Secretary Steven Mnuchin said Wednesday he would not push in the near term for policies that would weaken the U.S. dollar.

"I think the dollar is the reserve currency of the world. It's in our interest; we want to maintain it," Mnuchin told CNBC's "Squawk Box." "A stable dollar is very important and over the long-term period of time I do believe in a strong dollar, which signifies a strong U.S. economy, a strong stock market and particularly because of the president's economic policies."

Mnuchin's comments come after President Donald Trump reportedly asked aides to find ways to weaken the U.S. dollar in an effort to boost the economy ahead of the 2020 election.

A weaker dollar makes it cheaper for people overseas to buy U.S.-made products. However, administrations have traditionally said they favored a strong dollar since assets like U.S. Treasurys are widely held around the globe.

But Trump said June 10 that a strong dollar puts the U.S. at a "disadvantage," adding that the Federal Reserve has set rates "way too high."

"The president is very focused on a lot of issues. He is focused on our trade issues. He is focused on our economic issues," Mnuchin said.