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Some traders reacted to remarks by Mr Geithner that were initially interpreted as endorsing a proposal recently put forward by China to replace the US currency with the International Monetary Fund's Special Drawing Rights as the world's reserve currency.
Masafumi Yamamoto, the head of foreign exchange strategy in Japan at Royal Bank of Scotland, said the comments were probably not made from the standpoint of foreign exchange policy.
"It is hard for the US to seek a stronger dollar, but at the same time, if they call for a weaker dollar that could make it hard for them to finance their deficit," he told Reuters.
Bloomberg also reports that Mr Geithner is to ask Congress for more powers to regulate large hedge funds and private-equity firms.
