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Why are exchange rates so difficult to predict?

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Author Info
Jian Wang

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Abstract

A quarter-century quest hasn't found the elusive links between economic fundamentals and currency values. ; The U.S. dollar has been losing value against several major currencies this decade. Since 2001-02, the U.S. currency has fallen about 50 percent against the euro, 40 percent against the Canadian dollar and 30 percent against the British pound .

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File URL: http://dallasfed.org/research/eclett/2008/el0806.html
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Article provided by Federal Reserve Bank of Dallas in its journal Economic Letter.

Volume (Year): (2008)
Issue (Month): Jun ()
Pages:
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Handle: RePEc:fip:feddel:y:2008:i:jun:n:v.3no.6

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Related research
Keywords: Dollar; American ; Forecasting ; Foreign exchange rates;

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