Euro zone officials applaud Geithner's dollar stance

GOTHENBURG, Sweden Oct 2 (Reuters) - Euro zone officials applauded the United States' renewed backing for a strong U.S. dollar on Friday as they prepared for Group of Seven talks in Istanbul. U.S. Treasury Secretary Timothy Geithner said late on Thursday a strong dollar was very important, following complaints by European finance ministers about volatility in currency markets. [ID:nN01294346] "I'm glad that he is in favour of a strong dollar. I hope he will be heard," French Economy Minister Christine Lagarde told reporters when asked about Geithner's comments. "Everybody needs a strong dollar."

"We'll be able to speak a bit about the dollar, I hope for instance in Istanbul in the next few days," she said.

The euro has appreciated 4.35 percent against the dollar EUR= so far this year, causing pain for euro zone exporters.

Asked if he was happy with Geithner's support for the dollar, Dutch Finance Minister Wouter Bos said: "Of course I am very happy."

Euro zone finance ministers and European Central Bank officials meeting in Gothenburg, Sweden on Thursday had a wide-ranging dicussion on currency policy and left little doubt they wish to see a commitment to currency stability in Istanbul. [ID:nL1607718]

"There is a very strong sentiment that we have a shared interest in a strong and stable international financial system, that excessive volatility and disorderly movement in exchange rates has adverse implications for economic and financial stability," ECB President Jean-Claude Trichet said on Thursday, in comments which helped push the euro to a three-week low of $1.4502. (Reporting by Julien Toyer, writing by Krista Hughes, editing by Mike Peacock)