Europe worries about dollar's impact on trade.

Publication: The Dallas Morning News (Dallas, Texas) (via Knight-Ridder/Tribune Business News)

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COPYRIGHT 2005 The Dallas Morning News

Feb. 24--During President Bush's goodwill tour of Europe this week, the falling dollar has been the subject on every mind but on no agenda.

True, economists say, a continuing weak dollar could lead to higher interest rates in the United States, higher oil prices worldwide, and higher levels of tension between the United States and Europe.

But White House officials said the topic did not surface during meetings this week with the European Union, though some added it is frequently discussed at staff levels on both continents.

"Our policy is very clear in terms of the strong dollar," U.S. National Security Adviser Stephen Hadley said Wednesday, citing efforts to cut the federal budget deficit.

But as American tourists and consumers of foreign goods will attest, the dollar is not strong.

While the two currencies were roughly equal in 2003, today it takes $1.32 to purchase one euro. The British pound, which traded at around $1.60 to the dollar two...

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