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U.S. Treasury Secretary Henry Paulson reiterated support for a strong dollar and said changes in today's statement by Group of Seven policy makers about currencies reflects recent market movements.

“I reiterated in very strong terms our commitment to a strong dollar,'' Paulson said at a press conference after G-7 talks in Washington.

Finance ministers and central bankers signaled concern over the slump in the dollar, citing “sharp fluctuations in major currencies.'' The U.S. currency has fallen about 8 percent against the euro and 6 percent versus the yen since the last G-7 meeting in Tokyo on Feb. 9, and reached a record low of $1.5913 per euro this week.

“All I'm going to say is that if you never changed the communiqu? language no matter what happened around the world, it would be pretty meaningless,'' Paulson said. “This communiqu? reflects market developments and changes in the markets.''

Policy makers from the U.S., U.K., France, Canada, Italy, Germany and Japan made the first significant change to their language on currencies since February 2004 in Boca Raton, Florida.

“Since our last meeting, there have been at times sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability,'' the communiqu? said. “We continue to monitor exchange markets closely, and cooperate as appropriate.''

$245 Billion in Losses

The officials met to address a credit crisis sparked by losses on U.S. mortgage securities that have caused financial institutions to write down $245 billion in assets. The International Monetary Fund said two days ago that there is a 25 percent chance of a global contraction.

Paulson said he explained to his colleagues the housing downturn in the U.S. that has sent foreclosures soaring and made credit harder to get for consumers and companies alike, noting that the economy has “sharply slowed down and the risks are to the downside.''

Concern that the impact from the U.S. economic slowdown would spread to the rest of the world was shared by his counterparts, he said. “There isn't anyone in that room that believes in decoupling,'' he said cashadvance payday advance.

He reiterated that he hasn't seen any plan in Congress that calls for the use of public funds to alleviate the housing crisis that wouldn't do “more harm than good.'' Congressional proposals to use government money aren't “gaining traction,'' he said.

Market Oversight

In a statement issued after the talks, Paulson said the policy makers agreed to cooperate to address the financial market turmoil that threatens to slow growth worldwide.

“We have worked, and will continue to work, closely to address global challenges and take concrete actions,'' he said. “Most of our discussion focused on the ongoing challenges in the global economy and the international financial system, and the policy responses to these challenges.''

The ministers' joint statement after the meetings said the global economic slowdown may worsen amid an “entrenched'' credit squeeze.

Paulson said he “welcomed'' the report by the Financial Stability Forum, chaired by Bank of Italy Governor Mario Draghi, that urged regulators to strengthen accounting rules, tighten bank oversight and require more corporate disclosure.

The FSF also said central banks should consider taking collateral in currencies other than their own to boost liquidity in times of crisis.

`Rapid' Implementation

“We discussed the importance of rapid and effective implementation of the FSF findings,'' Paulson said.

The Treasury chief said the ministers discussed efforts by the International Monetary Fund to streamline its operations and cut expenses while improving its monitoring of financial markets.

“I underscored the need for firm implementation of the IMF's new framework for exchange rate surveillance,'' he said.

Paulson reiterated that the financial market turmoil, the fall in housing prices and rising energy costs, were weighing on the U.S. economy.

“I have the greatest confidence in the resiliency, flexibility and strength of our economy and our capital markets,'' he said.

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