undervalued currency


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.

​ Was this Helpful? YES  NO 4 people found this helpful.

The cause of the existence of the undervalued currency was determined to be due to the foreign government pegging the currency.

​ Was this Helpful? YES  NO 6 people found this helpful.

There was some undervalued currency there and it was something very interesting to me and my friend Kevin, who knew a lot about it.

​ Was this Helpful? YES  NO 3 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
undervalued undervalued stock