scholarly journals Currency Market Efficiency Revisited: Evidence from Korea

2019 ◽  
Vol 7 (3) ◽  
pp. 52
Author(s):  
Kang
Keyword(s):  
Interest Rate ◽  
Market Efficiency ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Central Banks ◽  
Forward Rate ◽  
Exchange Market ◽  
Interest Rate Parity ◽  
Currency Market ◽  
Rate Parity

Keywords: foreign exchange market efficiency; forward rate unbiased hypothesis; covered interest rate parity; central banks; central banks’ policies

scholarly journals The Uncovered Interest Rate Parity Anomaly And Foreign Exchange Market Turnover

2012 ◽  
Vol 11 (3) ◽  
pp. 299 ◽  
Author(s):  
John F. Boschen ◽  
Kimberly J. Smith
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Foreign Exchange Markets ◽  
Exchange Market ◽  
Interest Rate Parity ◽  
High Interest Rate ◽  
Uncovered Interest Rate Parity ◽  
Exchange Markets ◽  
Rate Parity

The uncovered interest rate parity (UIP) anomaly is that high interest rate currencies appreciate, rather than depreciate, against low interest rate currencies. We show that the UIP anomalies apparent in six major currency pairs have diminished over our 1995-2010 sample period. We further show that the observed decline in deviations from UIP is associated with the substantially higher transaction volume now present in the foreign exchange markets. We interpret our findings as consistent with the proposition that the UIP anomaly dissipates as the foreign exchange markets become more efficient.

How the Federal Reserve's Central Bank Swap Lines Have Supported U.S. Corporate Borrowers in the Leveraged Loan Market

FEDS Notes ◽  
2020 ◽  
Vol 2020 (2802) ◽  
Author(s):  
Annie McCrone ◽  
◽  
Ralf Meisenzahl ◽  
Friederike Niepmann ◽  
Tim Schmidt-Eisenlohr ◽  
...  
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Foreign Exchange ◽  
Federal Reserve ◽  
Central Banks ◽  
Interest Rate Parity ◽  
Monetary Authorities ◽  
Rate Parity ◽  
In The Beginning ◽  
The Cost

The cost of borrowing U.S. dollars through foreign exchange (FX) swap markets increased significantly in the beginning of the Covid-19 pandemic in February 2020, indicated by larger deviations from Covered Interest Rate Parity (CIP). CIP deviations narrowed again when the Federal Reserve expanded its swap lines to support U.S. dollar liquidity globally—by enhancing and extending its swap facility with foreign central banks and introducing the new temporary Foreign and International Monetary Authorities (FIMA) repurchase agreement facility.

scholarly journals Deviations From Covered Interest Rate Parity: Evaluating Drivers for Changes

2020 ◽  
Vol 4 (2) ◽  
pp. 1-1
Author(s):  
Fernando Chertman
Keyword(s):  
Interest Rate ◽  
Literature Review ◽  
Foreign Exchange Market ◽  
Extensive Literature ◽  
Exchange Market ◽  
Interest Rate Parity ◽  
No Arbitrage ◽  
Related Literature ◽  
Rate Parity ◽  
New Perspective

This paper evaluates the deviation from covered interest rate parity (CIP) after the great financial crisis. As a new phenomenon, this deviation has been approached both theoretically (violating the no arbitrage condition) and empirically. Through an extensive literature review, this study maps the possible drivers of the deviation and their proxies. We apply the analysis on a set of countries that are not yet explored in the related literature so far, even though represent a significant part of the foreign exchange market. Regarding the results, a significant weight in the financial drivers is obtained. The result claims for a deeper analysis and opens the possibility to evaluate this phenomenon under a new perspective.      

scholarly journals A Study on Investors Awareness about Equity and Currency Market in Private Sectors

2021 ◽  
Vol 9 (1) ◽  
pp. 34-38
Author(s):  
Ms. Latha ◽  
K S Bhavani Devi
Keyword(s):  
Stock Market ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Central Banks ◽  
Business Owners ◽  
Market Manipulation ◽  
Separate Entity ◽  
Exchange Market ◽  
Good Relationship ◽  
Currency Market

The study was conducted to examine the awareness among the investors about equity and currency market. The study was useful to identify the investors’ mentality towards stock market. The researcher could gain knowledge about equity and currency market. As well, it’s also helpful in creating a good relationship with the investors. At the beginning of a business, owners put some effort to finding the finance assets into the business. This creates the shape of the capital on the business liability to a separate entity from its owners. Although, the foreign exchange market is isolated comparing to other than this. Nevertheless market manipulation of central banks by the foreign exchange market has to be mentioned to the nearest ideal perfect completion.

scholarly journals Efficiency of Foreign Exchange and Its Related Derivatives Market: Evidence From Korea

2019 ◽  
Vol 10 (2) ◽  
pp. 92
Author(s):  
Min-woo Kang
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Forward Rate ◽  
Exchange Market ◽  
Central Bank Intervention ◽  
Interest Rate Parity ◽  
Long Time ◽  
Derivatives Markets ◽  
Forward Rate Unbiasedness Hypothesis

This study aims to test the efficiency of the Korean foreign exchange market and examine its determinants by employing several well-established methodologies based on current theoretical arguments on the forward rate unbiasedness hypothesis and covered interest rate parity. The empirical findings indicate that the foreign exchange market and its related derivatives markets were inefficient during the period 2006-2016, but have improved considerably after the 2008-2009 financial crisis. As the inefficiency prevailed for a long time, emphasis is on the presence of risk premia in the international financial market and the role of central bank intervention.

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