IMF's Lipsky says euro now overvalued (at Reuters)

WASHINGTON, July 22 (Reuters) - The euro is now overvalued relative to its medium-term fundamentals while the U.S. dollar's decline has brought it near equilibrium, a top official at the International Monetary Fund said on Tuesday. "In our view, the euro is now overvalued relative to medium-term fundamentals, while the currencies of many current account surplus countries, including China, remain substantially undervalued, despite a small appreciation in real effective terms," John Lipsky, the IMF's deputy managing director, said in a speech prepared for delivery at the Brookings Institution. Lipsky noted that the decline in the value of the dollar was helping to bring down the country's current account deficit, and had moved the dollar "close to its medium-term equilibrium level." (Editing by James... [read full story]