Rogoff Calls Dollar 20% Overvalued, Warns Markets ‘Naive’ on War

Elevated US dollar valuations signal long-term correction risks, according to Harvard University professor Kenneth Rogoff, who also warned that investors may be overestimating the likelihood of a near-term resolution to the Iran war.

“The dollar is probably at least still 20% overvalued,” the former chief economist at the International Monetary Fund said in an interview. “Every previous episode where the dollar — or frankly any major currency — has been this overvalued, it tends to come down over, say, a five- or six-year period.”