07:48 GMT21 February 2020
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    The US dollar is overvalued due to its status of a safe-have currency and the decline in oil prices, IMF chief Christine Lagarde said.

    WASHINGTON (Sputnik) — The US dollar is overvalued because it is considered a safe-haven currency and its value has also been boosted by the decline in oil prices, International Monetary Fund Managing Director Christine Lagarde said in a briefing on Wednesday.

    "That is a factor of probably of flight to safety, the safe-haven factor that always applies to the US dollar in times of uncertainty, and certainly the variation in the price of oil is often correlated with an appreciation of the dollar when the price of the barrel goes down," Lagarde stated.

    Earlier in the day, the IMF issued a report stating that the US dollar has been overvalued by 10 to 20 percent.

    On Tuesday, US Federal Reserve Chair Janet Yellen said an exit by the United Kingdom from the European Union, also known as Brexit, could force financial markets to switch to safety flows in the US dollar or other alternative currencies, while increasing their value.

    Related:

    Oil Prices Climb as US Dollar Weakens
    US Dollar Set to Slide Steadily for First Time Since July 2014
    Euro Uncertainty Amid Brexit Can ‘Push Up’ US Dollar
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    US dollar, International Monetary Fund, Christine Lagarde, United States
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