Treasury Secretary Steven Mnuchin said the U.S. is not aiming for a trade war on Thursday, one day after the dollar plummeted to a three-week low in response to his previous comments.
“We want free and fair and reciprocal trade. So I think it’s very clear we’re not looking to get into trade wars. On the other hand, we are looking to defend America’s interests,” Mnuchin told reporters in Davos, Switzerland, according to Reuters.
{mosads}On Wednesday, he offered praise for a weak dollar, saying it presents economic opportunities.
“Obviously, a weaker dollar is good for us as it relates to trade and opportunities,” Mnuchin said.
“Longer-term, the strength of the dollar is a reflection of the strength of the U.S. economy and the fact that it is and will continue to be the primary currency in terms of the reserve currency,” he continued.
The dollar’s value dropped 0.5 percent to 89.66 following those comments, marking the first time in three years the index has fallen under 90 points.
“I thought my comment on the dollar was actually quite clear yesterday,” Mnuchin told reporters on Thursday, Reuters reported. “I thought it was actually balanced and consistent with what I’ve said before, which is, we are not concerned with where the dollar is in the short term.”