May 15 (Bloomberg) -- Americans want Treasury Secretary Henry Paulson to act to stop the dollar's decline, which has stoked the inflation eroding their household incomes.

A Bloomberg/Los Angeles Times poll found that 76 percent of Americans think the government should do something to halt the falling dollar. Among those with incomes of $100,000 or more, seven in 10 favored aiding the currency, putting pressure on Paulson, who's charged with setting the policy, to match his ``strong dollar'' rhetoric with action.

The U.S. currency has slumped 41 percent against the euro since 2002 and 13 percent in the past 12 months alone. That has contributed to a surge in energy and commodity prices to record levels, and prompted central banks to reduce their share of foreign exchange reserves in dollars.

``It's not just the economic impact,'' said Paul Burt, who heads Westlake Financial Group, an employee benefits consulting firm, in Lake Forest, Illinois. ``The perception of the decline in the dollar is as important as the decline itself. The dollar needs to be respected in the world, and the government needs to realize that.''

Burt, 47, had few specific prescriptions for the Bush administration beyond trimming the federal budget and U.S. trade deficits. ``I don't think it can be addressed very easily,'' he said, referring to halting the dollar's drop.

The nationwide poll of 2,208 adults was conducted May 1 to May 8. The sampling error is plus or minus 3 percentage points. There were 650 respondents who earned at least $100,000. The survey noted that economists say a weaker dollar both adds to the cost of imported goods and helps American exports.

No Intervention

Five consecutive Treasury secretaries in the Clinton and Bush administrations have maintained the so-called strong-dollar policy since 1995. Bush's Treasury chiefs have refrained from intervening in markets to buy the currency. The last time the U.S. bought dollars to influence its value was 13 years ago.

Paulson did help strengthen the language used by Group of Seven officials to address the dollar's decline last month. Central bankers and finance ministers from the G-7 denounced ``sharp fluctuations in major currencies'' that could have ``implications for economic and financial stability.''

The statement was aimed at persuading investors to look past the short-term U.S. economic slowdown and financial-market turmoil, a Treasury official said last week.

``The long-term fundamentals of the U.S. economy will be reflected in our currency,'' Paulson said in Kansas City, Missouri, last week, responding to a question from the audience. The Treasury chief has been asked by reporters or members of the public about the dollar repeatedly since its slide accelerated in September.

`Steadfastly' Opposed

Though the poll results indicate Americans want stronger action, analysts said it's still unlikely Paulson would abandon his opposition to intervention. That means popular discontent with the currency's decline may deepen. A new administration will take office in January after elections in November.

``The U.S. view is we'll take care of our economy and the currency will take care of itself,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. ``The administration is steadfastly against any kind of intervention.''

Even without stronger government action, market watchers said the U.S. currency may extend its rally.

The dollar will strengthen against most major currencies in the next six months as the Federal Reserve stops reducing interest rates, a separate survey of Bloomberg customers showed.

Rising Rates of Return

The end of Fed rate cuts will boost the allure of American assets for international investors, according to U.S. respondents in the monthly Bloomberg Professional Global Confidence Index, which questioned 3,447 users from Chicago to London to Hong Kong.

After declining 15 percent in the previous 12 months to a record low 70.698 on March 17, the Dollar Index traded on ICE Futures in New York that compares the currency to those of six trading partners has risen 3.9 percent to 73.473.

``In order for the dollar to bottom out, investors have to change their behavior, and they seem to be doing so,'' said Marc Chandler, global head of currency strategy in New York at Brown Brothers Harriman Inc. ``But Bush is going to leave office without ever intervening,'' he forecast.

Christina Griffin, who remembers her reaction to the euro's introduction a decade ago, won't be pleased with inaction. Married to a State Department officer and living in Italy, she was sure the new currency could never challenge the dollar's global supremacy.

``I thought, `this will never get off the ground,''' Griffin, a 63-year-old resident of Washington, said of the euro's 1999 debut. ``The dollar used to be everybody's benchmark. Now it's not. Something should be done.''

Editor: Haijing Qu