The euro is overvalued, even though the dollar is close to its equilibrium value, the International Monetary Fund said on Tuesday, warning that new exchange rate misalignments could be emerging.

“In our view the euro is now overvalued relative to medium-term fundamentals, while the currencies of many current account surplus countries, including China, remain substantially undervalued,” John Lipsky, the IMF’s first deputy managing director, said in a speech.