US will not devalue dollar to boost economy

The United States Treasury Secretary, Timothy Geithner, has said the US would not devalue its currency in an attempt to boost the country's economy.

"It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to [be] competitive," he said to business leaders in Silicon Valley on Monday.

"It is not a viable, feasible strategy."

The dollar strengthened against a basket of currencies after he made his comments, including the yen, euro and pound sterling.

He was talking ahead of this weekend's meeting of G20 finance leaders in South Korea which is expected to be overshadowed by a dispute between the US and China over the valuation of the yuan and growing fears of protectionist currency wars.

Read a full report at the Daily Telegraph. ·