ECB’s Trichet: Confident U.S. still backs strong dollar

FRANKFURT (BestGrowthStock) – European Central Bank President Jean-Claude Trichet said on Thursday he is confident the Federal Reserve still supports a strong dollar, after the U.S. central bank committed to pumping more money into its economy via bond purchases.

“I have no indication that would change my trust in the fact that (Fed policymakers) … are not playing the strategy of the weak dollar,” Trichet told a news conference after the ECB kept interest rates on hold at a record low of 1.0 percent for the 18th month running.

“It is in the interest of the U.S. to have a strong dollar vis-a-vis the other floating currencies.”

The Federal Reserve on Wednesday launched a fresh effort to support a struggling U.S. economy, committing to buy $600 billion in government bonds despite concerns the program could do more harm than good.

(Reporting by Sakari Suoninen; writing by John Stonestreet; Editing by Ron Askew)

ECB’s Trichet: Confident U.S. still backs strong dollar