Currency overvaluation - Mainly applies to international equities. 1) Consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., Central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); 2) Currency value exceeding purchasing power parity.
Currency overvaluation : mainly applies to international equities. 1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); 2) currency value exceeding purchasing power parity.
Currency overvaluation