Mundell: Euro too high against dollar

THE euro is overvalued against the dollar, Nobel Prize laureate Robert Mundell said in a newspaper interview.

“The euro is currently overvalued,” said Mr Mundell, who won the Nobel prize for economics in 1999 and is often credited as the intellectual father of the euro for his research on optimal currency zones.

Mr Mundell noted that after being launched at a rate of $1.18, the single European currency fell to $0.82 before appreciating to $1.60.