publication . Article . 1997

What determines the exchange rate: economic factors or market sentiment?

Gregory P. Hopper;
Open Access
  • Published: 01 Jan 1997
Do economic factors influence exchange rates? Or does market sentiment play a bigger role? Are short-run exchange rates predictable? Greg Hopper reviews exchange-rate economics, focusing on what is predictable and what isn't. He also examines the practical implications of exchange-rate theories for currency option pricing, risk management, and portfolio selection.
free text keywords: Foreign exchange rates
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