The Futures Trading Activity And Exchange Rate Volatility: An Indian Perspective - Softcover

Maji, Krishnendu

Softcover

ISBN 10: 620255259X ISBN 13: 9786202552592

Verlag: LAP LAMBERT Academic Publishing, 2020

Inhaltsangabe

Foreign exchange derivative instruments are used by both hedger and speculators. Whereas hedgers use them in order to reduce their currency risk exposure, speculators use derivative instruments in order to increase their potential gain from exchange rate movements. The objective of this study is to empirically test whether trading activity in the Indian foreign exchange futures market (which is one of the derivative markets) has any effect on the stability of the underlying exchange rate or not. For the purpose of the study daily information on the spot exchange rates, currency futures trading volume, and open interest were collected for the Euro, British Pound Sterling, Japanese Yen, and US Dollar. The empirical results indicate that futures market trading activity has a significant effect on the exchange rate volatility. In addition to that, the study concludes, shock in futures market trading activity seems to have a destabilizing effect on the underlying exchange rates.

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Über die Autorin bzw. den Autor

Krishnendu is an M.Phil in Economics (Specialization: Econometrics) from the University of Calcutta and Masters in Applied Economics (Specialization in Econometrics & Finance) from Presidency University. He is an accomplished researcher having strong analytical skills and experience.

Details zur Ausgabe

• Verlag: LAP LAMBERT Academic Publishing
• Erscheinungsdatum: 2020
• Sprache: Englisch
• ISBN 10: 620255259X
• ISBN 13: 9786202552592
• Einband: Taschenbuch
• Anzahl der Seiten: 76
• Kontakt zum Hersteller: Nicht verfügbar
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