DAVOS, Switzerland (AP) — The U.S. treasury chief has welcomed a weaker dollar, breaking with a past commitment by the U.S. government to back a strong dollar. The comments led to a sharp drop the currency Wednesday.

During his visit to the World Economic Forum in Davos, Switzerland, Steven Mnuchin said that: "Obviously a weaker dollar is good for us as it relates to trade and opportunities."

For most of the past two decades, U.S. Treasury chiefs regularly stated that a "strong dollar is in the best interests of the United States."

Mnuchin's words could be a signal that the Trump administration is prepared to try to talk down the dollar's value to boost exports. A weaker dollar makes U.S. products more competitive internationally.

The dollar hit a three-year low of $1.2405 on Wednesday.