Asian Currencies Undervalued Amid Trade Surpluses

Asian currency exchange rates have recently come under scrutiny by observers of international monetary economics. The yuan, yen, and won are considered undervalued by some experts.

China, Japan, and Korea all run trade and current account surpluses at a time when the US is experiencing corresponding deficits. This disparity in economic fundamentals could influence exchange rates.

The article suggests that foreign exchange intervention may not be effective in adjusting these rates due to the underlying economic factors driving them.