Author

Contributions

  • Joo, Hyunsoo. - Contributor
  • Zhang, Zhiwei. - Contributor

Publication

2009 - Federal Reserve Board, Washington, D.C, District of Columbia

Language

English

Word Count

0 words, Guess

Page Count

0 pages

Physical Format

Electronic resource

Identifiers

Classifications

  • LCCHG3879

Description

"This paper utilizes a unique high-frequency database to measure how exchange rates in nine emerging markets react to macroeconomic news in the U.S. and domestic economies from 2000 to 2006. We find that major U.S. macroeconomic news have a strong impact on the returns and volatilities of emerging market exchange rates, but many domestic news do not. Emerging market currencies have become more sensitive to U.S. news in recent years. We also find that market sentiment could sway the impact of news on these currencies systematically, as good (bad) news seems to matter more when optimism (pessimism) prevails. Market uncertainty also interacts with macroeconomic news in a statistically significant way, but its role varies across currencies and news"--Federal Reserve Board web site.

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