Paulson says dollar to reflect strong fundamentals

STANFORD, California (Reuters) - Treasury Secretary Henry Paulson on Friday reiterated his view that a strong dollar was in the U.S. interest and the greenback's value would ultimately reflect strong economic fundamentals.

"The strong dollar is in the nation's interest. Our economy like any other has got its ups and downs," Paulson told an economic policy conference at Stanford University. "The long term fundamentals are strong. And I'm confident they'll be reflected in currency market."

The dollar has declined in value as the U.S. economy has weakened under the strain of a housing crisis and financial market turmoil. Federal Reserve interest rate cuts have also reduced the dollar's value against major currencies including the euro and Britain's pound.

(Reporting by David Lawder, editing by Todd Eastham)