INTERNATIONAL MONETARY FUND SAYS: 'AMERICAN DOLLAR IS OVERVALUED'

The International Monetary Fund says the US dollar is overvalued on currency markets, while the euro, yen and pound were in line with fundamentals.

"The real effective exchange rates of Japan, the euro area, and the UK all appear broadly in line with medium-term fundamentals, while the US dollar is on the strong side of fundamentals," the IMF said in a report to the Group of 20 economic powers on Thursday.

The IMF noted recent government interventions in the foreign-exchange market had contributed to the imbalance, which has sparked fears of "currency wars" to protect exports amid the global economic recovery.

Read the rest here:

[link to news.theage.com.au]