Treasury Secretary Geithner continues his goodwill tour of the Gulf region, trying to reassure US creditors that the government will not inflate its way out of debt.
The dollar will remain the reserve currency, he says the Gulf states agree. When investors are concerned about risk dollar denominated investments generally increase, he observed. He said he would like to find ways to decrease volatility in oil and other commodity markets.
Markets are not concerned by risk today and the dollar is reflecting that, trading at its lowest levels in a month against the US dollar index.