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Treasury’s Yellen says U.S. committed to market-determined exchange rate – Metro US

Treasury’s Yellen says U.S. committed to market-determined exchange rate

FILE PHOTO: U.S. one dollar banknotes are seen in this
FILE PHOTO: U.S. one dollar banknotes are seen in this illustration

BONN, Germany (Reuters) – U.S. Treasury Secretary Janet Yellen said on Wednesday the United States was committed to a market-determined exchange rate, after being asked by reporters about recent strengthening of the dollar.

Yellen told reporters ahead of a meeting of G7 finance ministers in Bonn that tighter U.S. monetary policy and risk aversion were factors favoring dollar strength, but having a market-determined exchange rate was “the best regime.”

“The dollar is a global safe haven. And we tend to experience inflows naturally that push up the dollar in highly uncertain economic times,” Yellen said. “So I think it’s understandable that the dollar has risen.”

(Reporting by David Lawder; Writing by Rami Ayyub; editing by John Stonestreet and Chizu Nomiyama)

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