Is the dollar undervalued? Evidence from the Apple Store's MacBook pricing policies. The cheapest configuration available in the US will run you $1,099. In Japan, the same thing costs 139,800 yen, which at current exchange rates is $1,275 or so. But in the Netherlands it costs 1,049 euros — $1,546.
On most other products, the price in dollars is same as the price in Euros. In other words, you can get a Mac Mini for $599 or you can pay 599 euros for the same thing. Except 599 euros is almost $900 at current exchange rates.
At any rate, I started doing the research and typing up the basic facts for this post this morning without really knowing what direction I wanted to take or what conclusions I was reaching. So it sat around as a draft, and then today I was in the Apple store and I saw a group of dudes from Italy roll in with a bit less than $3,000 in crisp $100 bills buy up a bunch of stuff. Holiday shopping in the era of the cheap dollar, I guess.
EDIT: I corrected a typo wherein I'd written "almost $600" when it should have been "almost $900."