USD and Purchasing Power Parity

06 Mar, by Knowledge Leaders Team in Economy

We mentioned yesterday that the US dollar is again breaking out and that tends to be negative for most stocks around the world. Today, we thought we would continue to look at US dollar strength. The nominal trade-weighted dollar index by major currencies is again very...

Real Trade-Weighted Dollar At A 141-Month High

04 Feb, by Knowledge Leaders Team in Economy

The real trade-weighted exchange rate index against major currencies has reached its highest level at the end of January since April 2003. The broader index is currently at a 69-month high. The major currency index includes six currencies (Euro, Yen, Canadian Dollar, Pound Sterling, Swedish...

The US Dollar Still Looks Undervalued

13 May, by Knowledge Leaders Team in Uncategorized

So far in 2014 we have seen the dollar lose ground on a Purchasing Power Parity basis against most major currencies in the world. By our count, the dollar is undervalued against 15 major currencies and overvalued against just 3 (Hong Kong Dollar, Japanese Yen,...