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The exchange rate effects of macro news after the global Financial Crisis

  • Yin-Wong Cheung
  • , Rasmus Fatum*
  • , Yohei Yamamoto
  • *Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

We explore whether the exchange rate effects of macro news are time- and state-dependent by analyzing and comparing the relative influence of US and Japanese macro news on the JPY/USD rate before, during, and after the Global Financial Crisis. A comprehensive set totaling 40 time-stamped US and Japanese news variables and preceding survey expectations along with 5-min indicative JPY/USD quotes spanning the 1 January 1999 to 31 August 2016 period facilitate our analysis. Our results suggest that while US macro news are now more important than before the Crisis, the influence of Japanese macro news has waned to the point of near-irrelevance. These findings are of particular importance to exchange rate modeling of the New Era.
Original languageEnglish
Pages (from-to)424-443
Number of pages20
JournalJournal of International Money and Finance
Volume95
Online published24 Mar 2018
DOIs
Publication statusPublished - Jul 2019

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

Research Keywords

  • Foreign exchange rates
  • Global Financial Crisis
  • Macro news surprises

Policy Impact

  • Cited in Policy Documents

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