IMF thinks the dollar is overvalued by as much as 10 per cent

The IMF has said that it considers the dollar is mildly overvalued by as much as 10 per cent more than its fundamentals suggest. The organisation said that it expects US growth of 1.7 per cent in 2013, and 2.7 per cent in 2014.

Risks to the US economic outlook are said to be modestly tilted to the downside.

On tapering - a reduction in the rate of expansion of the Fed's balance sheet - the IMF said that an exit could lead to excessive interest rate volatility, and that it sees market volatility risks during the exit from record easing.