Fiscal policy makers from the Group of Seven meeting this week in Washington this week did not specifically address the issue of the dollar trading near all-time lows versus the euro in recent weeks.

Representatives from major trading partners gathered in Washington this week included Canada, France, Germany, Italy, Japan, the U.K. and U.S.

"We reaffirm that exchange rates should reflect economic fundamentals. Excess volatility and disorderly movements in exchange rates are undesirable for economic growth," they said in a communique issued on Friday. "We continue to monitor exchange markets closely, and cooperate as appropriate."

This falls inline with comments released earlier on Thursday by the head of the International Monetary Rund (IMF), who said that the euro's exchange rate is in line with fundamentals.

"It is true that the euro is close to its historic highs in real effective terms, but it is also true that the euro-area current account is in broad balance," Rato told reporters.

The U.S. has expressed its determination that market forces should determine the dollar's fate.

"I believe a strong dollar is in our nation's interest and believe that currency values should be determined based upon underlying economic fundamentals in a competitive market place," Paulson said.

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