Is the Dollar Overvalued?

The U.S. dollar has had an incredible run over the past 2 months, leading many traders to wonder whether the dollar is overvalued. The answer is NO. Based upon purchasing power parity, all of the major currencies are still very overvalued against the U.S. dollar -- particularly the Aussie.

What does this mean? From a valuation stand-point, the dollar still has room to rise.

Kathy Lien US Dollar

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