Obama Said to Tell G-7 Leaders Strong Dollar Poses a Problem

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G7 Summit Meeting
Germany's Chancellor Angela Merkel, US President Barack Obama and French President Francois Hollande during the G7 Summit. Photographer: Michael Kappeler/AFP/Getty Images

President Barack Obama told fellow Group of Seven leaders that the strong dollar is a problem, according to a French official with knowledge of the talks.

Geopolitical risks including Greece create volatility on financial markets, affecting interest rates and currencies, the official told reporters at the G-7 summit in southern Germany on Monday. In that context, Obama said that the strong dollar posed a problem, according to the official, who asked not to be named because the discussions were private.

The dollar reversed an earlier advance against the euro and fell from Friday’s 13-year high against the yen after the comments. The dollar dropped 0.4 percent to $1.1156 per euro as of 8:16 a.m. London time. The greenback weakened 0.3 percent to 125.20 yen.

A White House spokesman didn’t immediately respond to a request for comment.

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