Undervalued Currency

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Undervalued Currency

A currency with an exchange rate lower than it ought to be. A currency may be undervalued, for example, when its purchasing power, supply and demand are all strong, but its price is still comparatively low. Some governments keep their currencies undervalued deliberately because it makes their exports less expensive, but this is usually an unsustainable policy. See also: Weakening of a currency.
References in periodicals archive ?
Some involve imposing tariffs on imports from countries deemed to have undervalued currencies. Can they make a difference?
'Whether you're on a tight budget or looking for luxury without the high price tag, these undervalued currencies and decreasing foreign exchange rates should be on your radar,' Smart Travel says.
"In addition, with Trump having said certain countries are 'cheating' due to their undervalued currencies, currency tensions should also be expected."
With undervalued currencies potentially benefiting export businesses or companies with many foreign competitors, this information can influence our assessment of longer-term earnings potential and valuations.
Legislative Proposals to Address Undervalued Currencies
* Under both regimes, the periphery follows export-led growth strategies based on undervalued currencies pegged against the dollar.
It has long complained that other countries (namely those in Asia and Latin America) have undervalued currencies, which make US exports less competitive.
The region is receiving record amounts of foreign investment as a result of its buoyant outlook and, to a lesser extent, undervalued currencies. The U.S.
plan that included letting undervalued currencies strengthen would gain support at a contentious weekend Group of 20 meeting, lifting gold and oil prices.
Taking a jab at China, Geithner complained that foreign exchange intervention by countries trying to keep undervalued currencies from appreciating threatened the global recovery.
undervalued currencies. The yuan hit a new high against the US dollar on Wednesday, with the
Taking a jab at China, he complained that foreign exchange intervention by countries trying to keep undervalued currencies from appreciating was threatening the global recovery.