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CZK Historically Expensive, JPY and HUF Currently Cheap

FOREX
  • This chart shows the deviation of broad G10+CEE exchange rates from their LT average, looking at historical data since January 2000.
  • Interestingly, CZK is currently the most expensive currency looking at historical ranges, 'overvalued' by 13%.
  • The Euro is the second most expensive currency, 'overvalued' by 12.5%. Interestingly, the single currency appears significantly undervalued using a PPP approach, while it is moderately 'overvalued' when using a BEER valuation.
  • On the other hand, JPY and HUF are the cheapest currency, 'undervalued' by -5.5% and -4.7%.

Source: Bloomberg/MNI

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