IMF paper explores currency value at times of risk aversion
A working paper, published by the IMF, finds the flight to or from currencies following a spike in global equity prices is increasingly dependent on the yield they carry.
The authors, Reinout De Bock and Irineu de Carvalho Filho, observe the behaviour of exchange rates after large fluctuations in the volatility of equity prices. The Japanese yen, Swiss franc, and US dollar all appreciate against other G-10 and emerging market currencies, the authors say.
High-yield currencies tend to depreciate
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com