U.S. Treasury Secretary: U.S. Dollar depreciation has nothing to do with the "strong dollar policy" Reserves currency status remains stable.

U.S. Treasury Secretary Benentt refuted the view that the recent depreciation of the US dollar would cause concerns about its status as a key global currency. Benentt said in an interview on Thursday: "The price of the dollar has nothing to do with the 'strong dollar policy.' The 'strong dollar policy' refers to whether we are taking a series of measures in the long term to ensure that the dollar continues to be the global reserve currency." He pointed out that the Trump administration is indeed taking such measures. On Monday, the US dollar index ended its worst first half performance since 1973, falling by nearly 11%. This decline occurred against the backdrop of concerns about President Trump's policies, including the potential impact of tariff increases on economic growth and the tough diplomatic stance taken towards longtime allies, who typically invest large amounts of money in the U.S. Benentt said: "Through the Republican tax bill, we are creating conditions for economic growth. We are curbing inflation. We are making America the best destination for global capital investmentI believe this situation will continue." This year's issues related to the US dollar provide an opportunity for reform in the global financial system, which could reduce dependence on the dollar that has persisted for a long time. However, Benentt has cast doubt on this idea. Benentt said: "A few days ago, my friend and President of the European Central Bank, Lagarde, said that perhaps now is a 'crucial moment' for the euro. But I can tell you, if the euro exchange rate reaches 1.20 dollars, Europeans will definitely complain loudly that this rate is too high." The depreciation of the US dollar has pushed up the euro. As of the time of writing, the exchange rate of the euro to the dollar is 1.175. When the euro strengthens, European Central Bank officials sometimes criticize this "excessive" trend. Currency appreciation weakens export competitiveness. Benentt said: "They should be cautious with their expectations. In the United States, we are well aware of the responsibilities of being a reserve currency." He also said that this implies that U.S. policymakers should tolerate periods of dollar appreciation. Benentt also reiterated: "It has been predicted that the status of the dollar as a reserve currency will be lost since World War II. And I believe that those who are skeptical this time will be wrong once again."