strong dollar policy

A policy of the U.S. Treasury that seeks to avoid a weakly valued dollar compared with other currencies. A strong dollar makes the price of U.S. exports more expensive overseas and hurts the profits of corporations that sell to a lot of foreign markets, such as car manufacturers. Even though the strong dollar policy was articulated, it didn’t involve intervention in the foreign exchange market to buy dollars and drive the price up. The strong dollar policy was first articulated by U.S. Treasury Secretary Robert Rubin during the latter half of the 1990s, under President Bill Clinton. As of this printing, the administration of George W. Bush appeared to be backing away from the strong dollar policy.