Gulag Blog

IMF says ‘dollar overvalued,’ funding carry trade

Stacy Summary:  All are speaking as one on the dollar.  (Sounds to me like they are encouraging more speculators to pile in on a ‘one way bet’.)

• IMF says dollar funding carry trade, still overvalued

“There are indications that the U.S. dollar is now serving as the funding currency for carry trades,” the IMF said in a report published yesterday. “These trades may be contributing to upward pressure on the euro and some emerging-economy currencies.” While the dollar “has moved closer to medium-run equilibrium,” it is still “on the strong side.”

Tags: carry trade, imf

No comments yet.

Leave a comment