Australian markets are closely watching statements from US Treasury Secretary Scott Bessent, who recently addressed concerns about the dollar’s slide. Bessent dismissed the notion that the currency’s recent declines pose a threat to its standing as the world’s primary reserve currency. He made the remarks in an interview with Bloomberg on Thursday, which would be Friday in Australian Eastern Standard Time.
According to Bessent, short-term fluctuations in the dollar’s value are not indicative of its overall strength or the effectiveness of the government’s policies. He stated definitively, “The price of the dollar has nothing to do with a strong dollar policy.” Instead, he argued that a strong dollar policy is defined by long-term strategies aimed at maintaining the currency’s dominance on the global stage.
Bessent asserted that the current US administration is actively pursuing such strategies to bolster the dollar’s long-term position. While he did not elaborate on the specific measures being taken, his comments suggest a focus on broader economic policies designed to support the dollar’s role as the world’s reserve currency.
