IMF OKs continued dollar trading

Washington -- The International Monetary Fund OK'd currency traders' continued selling of the U.S. dollar, saying it "remained overvalued."

Contradicting outgoing IMF Managing Director Rodrigo Rato, who recently said the dollar was undervalued, the financial fund's staff concluded the dollar remained too high, the Financial Times reported Wednesday.

The IMF forecast slower growth in 2008 at 4.75 percent, compared with 5.2 percent expected this year. The IMF also said it saw little improvement in the world’s trade imbalances.

By greenlighting the selling of dollars, the IMF rejected claims the euro rose too far. The IMF’s pronouncement also countered arguments by France and other eurozone members who urge a language change to moderate the fall in the dollar, which dropped by more than 4 percent against the euro in September, the British newspaper said.

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