Overvaluation of Greenback May Be Nearing Its Limits, BNY Says

From bnnbloomberg.ca

The overvaluation of the U.S. dollar might be close to its peak, while China’s currency has continued to climb even further above its so-called fair value level, according to Bank of New York Mellon Corp. Accelerating global inflation is likely to spur a more hawkish response from major developed-market central banks outside the U.S., closing the policy gap to the Federal Reserve and reducing one of the greenback’s current tailwinds. “This may cap USD overvaluation near current levels,” Daniel Tenengauzer, BNY Mellon’s head of markets strategy, said in a note to clients Tuesday. The Bloomberg dollar index, ... (full story)