Because purchasing power parity valuations are a component of our currency rotation model on VectorGrader.com, we thought it would be a great idea to let users view the implied relative valuations of major currencies relative to the US dollar. So, we’ve created a new page on VectorGrader.com with sortable tables of valuations.
Below, we have a table of the purchasing power parity implied valuations of the G10 currencies. A trade weighted basket of these currencies is roughly 16% overvalued relative to the dollar, which is the same as the dollar being 14% undervalued.
|Currency||Exchange Rate (to USD)||% over or under valued|
|New Zealand Dollar||0.7351||19.6743%|