Mubasher: The International Monetary Fund (IMF) said in a report on Friday that the US dollar real effective exchange rate is overvalued by 10% to 20% compared to the United States medium-term fundamentals.

Meanwhile, Euro is broadly in line with euro zone fundamentals as a whole, ranging from undervaluation of 5% to overvaluation of 3%, the report indicated, noting that the EUR real effective exchange rate is overvalued by 10% to 20% compared to German fundamentals.

The IMF also considered China's Yuan to be broadly in line with fundamentals but current account surplus still too large, and similarly, Japan's Yen is broadly in line with fundamentals due to appreciation in 2016.

The British pound valuation is 0-15% above level consistent with fundamentals, due to high uncertainty over the Brexit, the report noted.