U.S. Treasury's Paulson says strong dollar is 'good thing' UPDATE

MOSCOW (Thomson Financial) - A strong American currency is a 'good thing' and in the interest of the United States, U.S. Treasury Secretary Henry Paulson said.

'I would agree that a strong dollar is a good thing and I believe a strong dollar in our nation's interest. Every economy is going to have some ups and downs. We are going through a tough period in the U.S. right now,' Paulson said in a radio interview with Ekho Moskvy.

'I believe that the long-term economic fundamentals in the United States are solid. I believe that they compare favorably with the long-term economic fundamentals of any other major industrialized nation and they will be reflected in the value of our currency,' he said.

Paulson met Sunday with Russian finance minister Alexei Kudrin and is scheduled to meet with Russian President Dmitry Medvedev and Russian Prime Minister Vladimir Putin later on Monday.

Asked about Russia's bid to join the global club of trading nations, the former Goldman Sachs (nyse: GS - news - people ) executive called Russia's economic progress 'quite noteworthy'.

'I believe that Russia's accession to the WTO is very important for the world,' Paulson said during his first visit to Russia as Treasury Secretary. 'This will not be easy, there will be opposition in Congress but I think it's important to try.'

Asked about the rising price of oil, Paulson said there are no quick fixes to what he called a 'big burden on the world economy and on consumers all over the world'.

'I don't have an optimal price of oil,' he said, repeating the Bush administration's position that prices are based on supply and demand.

Lawmakers on Capitol Hill have grown increasingly vocal that speculators have exacerbated the oil price rise and are considering stricter regulations on financial investment in energy futures contracts.

'Markets have got a great ability to adapt and consumer behavior I think will change significantly in the face of prices at this level,' Paulson told the radio interviewer.

corbett.daly@thomsonreuters.com

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