Date of this Version

3-1-2009

Document Type

Journal Article

Publication Details

Published Version.

Ho, C. S. F., & Ariff, M. (2009). Examining foreign exchange behaviour in Asia Pacific and Eastern European emerging countries. Global economy & finance journal, 2(1), 1-19.

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© Copyright World Business Institute

Abstract

This paper reports new findings on exchange rate dynamics concerning whether non-parity fundamentals and parity factors affect exchange rates within a group of trade-related emerging countries: non-parity fundamentals suggested by economic theories have yet been systematically related to exchange rates. We use high- and low-frequency multi-country pooled time series panel data approach. The evidence that emerges from this paper is that non-parity factors are significant contributors to exchange rates. These new findings on other-than-parity fundamentals add to a richer understanding of exchange rate behaviour as well as clarifying why existing findings are mixed.