After a meeting of finance ministers in France on Saturday, Treasury Secretary John W. Snow made remarks that confirmed the Bush administration's contentment with a weaker dollar. Snow's remarks caused a wave of currency selling, which resulted in an even weaker dollar. It is possible, that a weaker dollar could help the economy and create jobs by making American exports less expensive and therefore more competitive in foreign markets, while making imported goods less competitive with American products in the United States market. However, a weaker dollar could also hurt the economy if foreign investors become wary of investing in American stocks and bonds. A pullout by foreign investors could cause stock and bond markets to fall and interest rates to rise.
See "U.S. Aide's Comments Drive Down Dollar in Currency Markets", Keith Bradsher, The New York Times, May 18, 2003