Bessant denies dollar's fall threatens world's leading currency

U.S. Treasury Secretary Jeff Bessant dismissed the idea that the dollar's recent depreciation would affect its status as the world's leading currency. "The dollar price has nothing to do with a strong dollar policy," Bessant said this week. "The key to a strong dollar policy is whether we take steps in the long term to ensure that the dollar continues to be the global reserve currency." He believes that the Trump administration is indeed taking such steps. The dollar index fell nearly 11% in the first half of the year, its worst first-half performance since 1973. The depreciation came amid concerns about the Trump administration's policies, especially the potential impact of increased tariffs on economic growth and a tough diplomatic posture toward long-term allies that have been injecting money into the United States in the past. Bessant said the Republican tax bill "creates the conditions for economic growth."