Aussie Leads ‘Extreme’ Currencies Deutsche Says Avoid

In the last two years there has been no better place for foreign-exchange investors than in nations whose economies are tied to commodities. Now the rally has left those currencies at least 9.5 percent overvalued based on the relative costs of goods and services as measured by the Organization for Economic Cooperation and Development.

Exchange-rates for Australia, Canada and New Zealand have appreciated at least 20 percent since the start of 2009 as their central banks boosted interest rates to curb inflation from rising prices of their raw-materials exports, according to data compiled by Bloomberg.