Does speculation play any role in determining the forward exchange rate?

Imad Moosa and Razzaque Bhatti

Applied Financial Economics, 1997, vol. 7, issue 6, 611-617

Abstract: This paper examines the role of spot and forward speculation in determining the forward exchange rate. The evidence reveals that neither spot nor forward speculation plays any role in determining the forward exchange rate in three currency combinations, lending support to covered interest parity. This finding is plausible as financial deregulation has created an environment in which deviations from CIP pale into insignificance even in domestic money markets

Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/758533853 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:7:y:1997:i:6:p:611-617

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/758533853

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().