If you’re involved in trading, investing, business planning or international finance, you must know the difference between spot rates and forward rates. Understanding the difference plays a big role ...
For businesses trading internationally, foreign exchange risk management has become a vital part of financial planning. Currency markets move by the second, and volatility driven by economic data, ...
The median level for the yen-U.S. dollar exchange rate is 163.34 one year from now, compared to 158.17 last week, according to this week’s 100,000 scenario simulation of JGB yields and the exchange ...
The median level for the yen-U.S. dollar exchange rate is 163.28 one year from now, compared to 161.65 last week, according to this week’s 100,000 scenario simulation of JGB yields and the exchange ...
This paper examines the Post Keynesian proposition that the forward rate is determined by covered interest parity and that it is not a predictor of the future spot rate, as suggested by the unbiased ...
We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...
Currency hedging mitigates the additional volatility that exchange rates impose on foreign assets. But these currency-hedged strategies bear additional costs and can have tax implications. Our recent ...