Rogoff: US Dollar Overvalued by 20%, Iran Conflict Solution Appears Naive

Harvard University economics professor Kenneth Rogoff warned that the high valuation of the US dollar increases the risk of a long‑term correction. He noted that the dollar is overvalued by about 20% and that this could threaten future financial stability. Rogoff also cautioned that investors are overly optimistic about a short‑term resolution to the conflict with Iran. He argued that such expectations could influence market behavior and lower perceived risk. His remarks reinforce concerns that the dollar’s strong position—particularly in foreign‑exchange markets and international trade—may lead to long‑term price adjustments. For investors, this may necessitate a reassessment of currency‑risk management strategies. In the near term, the dollar’s elevated valuation and uncertainty surrounding the Iran conflict could heighten volatility. Portfolio diversification and risk control therefore remain priority considerations. This is not investment advice.