What Determines the Forward Exchange Rate of the Euro?
AbstractThis study examines the determinants of the forward exchange rate of the euro in the context of the “modern approach” for five currency combinations. The co-integration analysis suggests that speculation has played a minor role and arbitrage played a major role in determining the forward exchange rate of the euro.
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Bibliographic InfoPaper provided by Department of Economics, University of Macedonia in its series Discussion Paper Series with number 2008_02.
Date of creation: Feb 2008
Date of revision: Feb 2008
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Web page: http://www.uom.gr/index.php?tmima=3
Euro; Forward Exchange Rate; Arbitrage; Speculation; Co-integration;
Other versions of this item:
- Costas Karfakis, 2008. "What determines the forward exchange rate of the euro?," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 4(2), pages 127-131.
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-09 (All new papers)
- NEP-CBA-2008-02-09 (Central Banking)
- NEP-EEC-2008-02-09 (European Economics)
- NEP-IFN-2008-02-09 (International Finance)
- NEP-MON-2008-02-09 (Monetary Economics)
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