$1 Trillion Asset Manager Says the Dollar Is Overvalued
- Greenback has factored in prospect of first U.S. rate increase
- Dollar is undervalued against many Asian currencies, Kwok says
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The dollar is overvalued and is unlikely to extend gains versus the euro and yen unless the Federal Reserve raises interest rates more than once, according to Amundi Asset Management, which oversees about $1 trillion.
The greenback has already factored in the prospect of the Fed’s first rate increase in almost a decade, said James Kwok, head of currency management at the company in London. The dollar is about 14 percent overvalued versus the euro and 12 percent against the yen, based on the Organization for Economic Cooperation and Development’s purchasing-power parity gauge.