Article Summary According to Gautam Kalani, Currency Strategist at Deutsche Bank, the Bank

Article Summary
According to Gautam Kalani, currency strategist at Deutsche Bank, the Chinese yuan is the most overvalued currency in the world. Kalani based his rankings on three valuation metrics, including purchasing power parity. Emerging market currencies dominate the most overvalued list, while many emerging market currencies are undervalued as well. For developed markets, the Swiss franc is the most overvalued currency, running a close second to the Chinese yuan, and the Japanese yen ranks as the world's most undervalued currency. The U.S. dollar falls toward the middle of the spectrum, ranking as slightly overvalued.

-Refer to the Article Summary. If, as the article claims, the Chinese yuan is the most overvalued currency in the world, how would you expect demand and supply in the foreign exchange markets to respond?

A) The supply of the yuan will rise, while the demand for other currencies will rise.
B) The supply of the yuan will rise, while the demand for other currencies will fall.
C) The demand for the yuan will rise, while the supply of other currencies will fall.
D) The demand for the yuan will fall, while the supply of other currencies will rise.