Trichet says U.S. interested in strong dollar

LAUSANNE, Switzerland (Reuters) - European Central Bank president Jean-Claude Trichet said on Friday that U.S. authorities were interested in a strong dollar.

"Foreign exchange rates are regularly examined in the Group of Seven," Trichet said at an event in the Swiss city of Lausanne.

"The last time we have looked into this point ... we noted with big interested, that the United States said they were convinced a strong dollar was in the interest of the country," he said.

The euro briefly rose above $1.41 on Friday, the highest level since the common currency was launched in 1999, buoyed by a half percentage point cut in U.S. interest rates earlier this week and expectations of more to come.

The euro's rise has intensified tension between the ECB and the French government, with French President Nicolas Sarkozy repeatedly blaming ECB policies for sluggish domestic economic growth and the euro's strength.

Sarkozy has said the strong euro is damaging French exporters and on Thursday suggested the ECB should cut its interest rates to boost the euro zone economy.

Trichet said on Friday, with regards to the central bank's monetary policy stance, he had nothing new to add to his comments made at his latest news conference.

"On monetary policy I have nothing to say other than what I have already said ... at the press conference of the governing council," Trichet said.

The ECB kept its benchmark rate on hold at 4.00 percent on September 6 and Trichet told a news conference after the decision that given the high level of uncertainty, additional information was needed before further conclusions for monetary policy could be drawn.

Trichet said the central bank was monitoring the ongoing market turbulences.

"The market correction is not something that we ignored," Trichet said.

"The correction included episodes with high levels of volatility and turbulent behavior," he said.

"We will take the appropriate action in this context," Trichet said.