A currency with an exchange rate lower than it ought to be is undervalued currency. A currency may be undervalued when its purchasing power, supply and demand are all strong, but still its price is comparatively low.

The rupee has been falling sharply over the past couple of months prompting experts to say it is now overshooting. A currency is said to be valued fairly if the REER (six currency index) Index is close to 100. When REER goes above the 100 mark, the currency is termed to be entering over valued zone and when it goes below 100, it […] Read more