The impact of the U.S.A. federal funds market on the international exchange market
DOI:
https://doi.org/10.13133/2037-3643/11653Keywords:
Euro-currency market, US, dollar, federal funds market, foreign exchange marketAbstract
The quotations for all currencies over a period of time show fluctuations of a greater or less degree; the same can be said of the deposit rates in the Euro-currency market. These fluctuations are irregular and depend on the strength of the respective currency as well as on particular demand and supply factors in the market. Only the dollar presents recurrent appreciations that are followed by equally recurrent depreciations. The present article sheds some light on this phenomena. The author analyses how the Federal funds market influences the international foreign exchange market, thus determining the recurring appreciations and depreciations of the dollar.
JEL: F31, F33, G20