Mnuchin shrugs at weaker dollar, sending currency lower


Treasury Secretary Steve Mnuchin and Commerce Secretary Wilbur Ross.

Treasury Secretary Steven Mnuchin on Thursday expressed no alarm about the weaker dollar, saying it actually has some benefits for the economy in terms of the trade balance.

“Obviously the short-term issues of the dollar have both positive and negative impacts for different parts of the economy,” Mnuchin said in an interview with CNBC.

“As it relates to trade, having a weaker dollar is somewhat better for us,” Mnuchin said.

The dollar

DXY, +0.01%

  turned lower in the wake of Mnuchin’s remarks.

In the wake of the Jackson Hole conference, talk of a possible currency war between the world’s biggest economies has heated up. Any sharp rise in currency values could derail the fragile economic recoveries in Europe and Japan.

Read: Currency war talk restarts after Jackson Hole

The euro has gained 13% against the dollar this year.

The trend slowed a bit Thursday after Reuters reported a growing number of European Central Bank officials are worried about the euro’s recent strength.

See: Dollar resurgence slows

In the interview, Mnuchin said that over the long run, a strong U.S. economy “is somewhat inevitable” given the strength of the U.S. economy.

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