Those hoping for a new formulation on the dollar from the Treasury are in for disappointment as incoming Treasury Secretary Geithner is quoted on the wires saying a strong dollar is in the US’s interest. He says it is important to maintain confidence in long-term economic strength and financial stability.
Geithner’s confirmation may not come today, as thought. He will be approved by the Senate Finance Committee today but the full Senate may not vote until next week.
USD/JPY is getting a boost from the Geithner comments, now at 88.50 from 88.20 before the remarks. Don’t expect the bounce to have legs, however.