We assess the properties of currency value strategies based on real exchange rates in a cross-sectional portfolio … setting. We find that real exchange rates predict currency excess returns, but in a way that is inconsistent with the notion … of currency value because a high valuation level forecasts a relative appreciation of the foreign currency going forward …

We assess the properties of currency value strategies based on real exchange rates in a cross-sectional portfolio … setting. We find that real exchange rates predict currency excess returns, but in a way that is inconsistent with the notion … of currency value because a high valuation level forecasts a relative appreciation of the foreign currency going forward …

We calculate the return on the major Asian currency denominated long-term government bonds in terms of a basket of the … People's Republic of China's (PRC) imports of goods and services, namely the real return on those assets from the PRC … of Malaysia's government bonds. This result shows that it is desirable for the PRC to substitute Asian currency …