Exchange rates and purchasing-power parities

Purchasing-power parity is the statistically calculated equilibrium exchange rate that makes the purchasing power of two currencies the same.
When there are significant differences between exchange rates and purchasing-power parity, there is normally a tendency towards restoring the balance, although the correction process can take several years. Purchasing-power parity is one of the statistical benchmarks used for exchange-rate forecasts. Click on a currency pair to view the chart for that pair.

UBS client advisors are happy to provide clients with more information and other research products.