Fed's Hoenig: several reasons why dollar weak

DURANGO, Colo., July 16 (Reuters) - The dollar's foreign exchange value has been sapped by the high U.S. current account deficit, slower growth and higher interest rates elsewhere, a top Federal Reserve policy-maker said on Wednesday, but he expected the currency to rebound as the U.S. economy recovers.

"There are good reasons why the dollar would be weaker relative to other countries. Number one, we're running a very substantial current account deficit," said Thomas Hoenig, president of the Federal Reserve Bank of Kansas City.

"This country over the last few years has consumed more goods than it has produced ... and to do that we spend our dollars but we have to borrow them back," he told an audience after delivering a speech here.

"That means other people have to want our dollars and as you accumulate more and more of the deficit, there is a tendency for them ... to pay not quite so much for (the dollars)."

(Reporting by Alister Bull, Editing by Chizu Nomiyama)