IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v59y2024ics1544612323011224.html
   My bibliography  Save this article

The impact of geopolitical risks on foreign exchange markets: Evidence from the Russia–Ukraine war

Author

Listed:
  • Hossain, Ashrafee T.
  • Masum, Abdullah-Al
  • Saadi, Samir

Abstract

We examine the relationship between geopolitical risks and foreign exchange markets using the Russia–Ukraine conflict as a natural experiment. Our main findings indicate that, due to intensified geopolitical risks, the conflict had a negative effect on foreign exchange rates. This adverse effect of geopolitical risks is more pronounced in countries with high reliance on Russian energy, countries with a high level of economic policy uncertainty, countries with geographic proximity to Russia and Ukraine, and countries where the degree of political rights, and freedom of political expression is elevated. Our additional analyses suggest that the Russian invasion of Ukraine has also negatively affected the return and volatility of the global equity markets.

Suggested Citation

  • Hossain, Ashrafee T. & Masum, Abdullah-Al & Saadi, Samir, 2024. "The impact of geopolitical risks on foreign exchange markets: Evidence from the Russia–Ukraine war," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011224
    DOI: 10.1016/j.frl.2023.104750
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323011224
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104750?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Geopolitical risks; Russia–Ukraine war; Foreign exchange markets; Global equity markets;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.