IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v3y2012i2p121-135.html
   My bibliography  Save this article

Determinants of euro-dollar exchange rate: an empirical analysis

Author

Listed:
  • Vivek Bhargava
  • Daniel Konku
  • Dheeraj Bhargava

Abstract

This study investigates the determinants of euro-dollar exchange rate since the inception of euro in January 1999. Initial results show that relative changes in consumer confidence in the USA and the Eurozone (CCI), relative consumer price index (CPI), unemployment rate (UMP), and money supply (M1) are important in explaining the value of the euro relative to the US dollar. When accounted for autocorrelation and heteroscedasticity in the data, vector autoregression/vector error correction models (VAR/VECM) show that the euro-dollar exchange rate is impacted by only CCI and M1.

Suggested Citation

  • Vivek Bhargava & Daniel Konku & Dheeraj Bhargava, 2012. "Determinants of euro-dollar exchange rate: an empirical analysis," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 3(2), pages 121-135.
    • Handle: RePEc:ids:afasfa:v:3:y:2012:i:2:p:121-135
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=48241
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    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:ids:afasfa:v:3:y:2012:i:2:p:121-135. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    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.