March 24 (Bloomberg) -- President Barack Obama said the dollar is “extraordinarily strong” because investors are confident in the ability of the U.S. to lead a worldwide recovery and rejected calls for a new global currency.

“There is a great deal of confidence that ultimately, although we are going through a rough patch, that the prospects for the world economy are very, very strong.”

Chinese central bank Governor Zhou Xiaochuan this week urged the International Monetary Fund to create a “super- sovereign reserve currency.”

Obama said tonight he saw “no need” for a new global currency.

Zhou’s comments may signal China’s ambitions for a leadership role at next week’s Group of 20 summit, economists said. They followed Premier Wen Jiabao’s call on March 13 for the U.S. “to guarantee the safety of China’s assets.”

China’s Treasury holdings climbed 46 percent in 2008 and now stand at about $740 billion, according to U.S. government data. The nation is the biggest holder of U.S. debt.

The dollar weakened after the Federal Reserve said it would buy Treasuries and the U.S. government outlined plans to buy illiquid bank assets.

G-20 leaders gather in London on April 2 to work on a common response to the financial crisis that has spawned a global recession. The summit will discuss proposals for overhauling the IMF.

To contact the reporter on this story: Hans Nichols in Washington at hnichols2@bloomberg.net

Last Updated: March 24, 2009 21:05 EDT