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DBS Equilibrium Exchange Rates (DEER)

Track currency valuation; get trade ideas. we provide analytics for 8 major currencies.

Analytics Manager

Chang_Wei_Liang


DBS Equilibrium Exchange Rates (DEER)

The DBS Equilibrium Exchange Rates (or DEER) indicate fair values for global currencies relative to a trade-weighted currency basket.

Our DEER fair value methodology is based on three economic fundamentals:

  1. Inflation differentials
  2. Productivity differentials
  3. Terms of trade differentials


A country with slower inflation, higher productivity, or higher terms of trade relative to its trading partners should see its currency strengthen (and vice-versa). All data are sourced from the IMF World Economic Outlook database, the IMF Commodity Terms of Trade database, CEIC, and DBS Research.