undervalued currency
Definition
The situation of a currency whose value on the exchange market is lower than is believed to be sustainable. This may be due to a pegged or managed rate that is below the market-clearing rate, or, under afloating rate, it may be due to speculative capital outflows. Contrasts with over-valued currency.
Use this term in a sentence
“ You should try and keep a look out for any undervalued currency and buy a lot of it when the time is right. ”
“ The cause of the existence of the undervalued currency was determined to be due to the foreign government pegging the currency. ”
“ There was some undervalued currency there and it was something very interesting to me and my friend Kevin, who knew a lot about it. ”
