Global investment banks (IBs) have forecasted that the won-to-dollar exchange rate will average around the 1,420 Korean won range over the next year. With this year’s annual average exchange rate ...

This paper addresses a key puzzle in international finance: whether exchange rates follow a random walk or exhibit predictable patterns. We demonstrate that exchange rates can possess a unit root ...

We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...