UPDATE 1-U.S. Treasury's Paulson says believes in strong dollar

(Adds Paulson quotes, details)

MOSCOW, June 30 (Reuters) - U.S. Treasury Secretary Henry Paulson said on Monday he believes in a strong U.S. dollar and that U.S officials were working to resolve the country's economic problems, including regulatory mistakes that led to excesses in the mortgage and banking sectors.

"I would agree that a strong dollar is a good thing and I believe it is in our nation's interest," Paulson said in a taped radio interview with Ekho Moskvy radio station.

"Every economy is going to have some ups and downs and we are going through a tough period in the United States right now," Paulson said, adding that U.S. long-term economic prospects were solid and will be ultimately reflected in the dollar's value.

Paulson said U.S. policies such as an economic stimulus programme to provide U.S. consumers with tax rebates and moves to prevent home foreclosures would enhance confidence in the U.S. economy and efforts to address capital markets turmoil.

"All of these things ultimately will increase confidence in the U.S. economy and will reinforce our policies for a strong dollar," said Paulson. He said high prices for oil were a big burden for the world economy.

"The price of oil right now is creating a big burden on the world economy," Paulson said.

He said the biggest driver of oil prices was that worldwide production capacity stayed stagnant and there was very little that could be done about price in the short term.

"But markets have a great ability to adapt and consumer behaviour will change significantly with prices at this level," Paulson said.

Paulson is in Moscow for talks with Russia's top leaders that some observers say could help shift the focus of a sometimes frosty U.S.-Russia relationship towards the more productive areas of trade and investment.

Paulson is due to meet President Dmitry Medvedev and Prime Minister Vladimir Putin later on Monday. (Reporting by David Lawder, writing by Gleb Bryanski)