Overvaluation of greenback may be nearing limits

NEW YORK: The overvaluation of the United States dollar might be close to its peak, while China’s currency has continued to climb even further above its so-called fair value level, according to Bank of New York (BNY) Mellon Corp.

Accelerating global inflation is likely to spur a more hawkish response from major developed-market central banks outside the US, closing the policy gap to the Federal Reserve and reducing one of the greenback’s current tailwinds.