Dollar decline in line with IMF forecast-IMF chief
WASHINGTON, Nov 2 (Reuters) New International Monetary Fund chief Dominique Strauss-Kahn on Friday maintained the official IMF line that the dollar is overvalued and the euro's value is in line with fundamentals.
''When you look at the mid-term external balances, with the high (U.S.) deficit, which is falling, the view we have ... is that the dollar is still overvalued and so it is no surprise to see a declining dollar. It is in line with what the fund is saying,'' Strauss-Kahn told reporters.
At his first news conference since taking the reins of the IMF on Thursday, Strauss-Kahn also said the fund did not expect the slowdown of the U.S. economy to lead to a recession.
''We don't see a reason for a recession in the U.S. nor in any other economy,'' he said, adding that emerging economies were performing strongly.
He said forecasts were for a higher oil price and so it was not surprising to see energy prices rising, but he cautioned this could affect economies.
''The
problem
is
what
will
be
in
the
coming
months
a
combination
of
the
different
downside
effects
of
oil
prices
and
consequences
of
the
financial
turmoil,''
he
said,
adding
''As
far
as
we
see
...
there
is
no
signal
it
will
go
further
than
a
slowdown
in
the
rate
of
growth.''
REUTERS
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