The Influence of Actual and Unrequited Interventions

Kathryn Dominguez and Freyan Panthaki
Additional contact information
Freyan Panthaki: London School of Economics

No 561, Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: Intervention operations are used by governments to manage their exchange rates but officials rarely confirm their presence in the market, leading inevitably to erroneous reports in the financial press. There are also reports of what we term, unrequited interventions, interventions that the market expects but do not materialize. In this paper we examine the effects of various types of intervention news on intra-day exchange rate behavior. We find that unrequited interventions have a statistically significant influence on returns, volatility and order flow, suggesting that the expectation of intervention, even when governments do not intervene, can affect currency values.

JEL-codes: F31 F33 G15 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2007
New Economics Papers: this item is included in nep-cba, nep-mon and nep-mst
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://fordschool.umich.edu/rsie/workingpapers/Papers551-575/r561.pdf

Related works:
Journal Article: The influence of actual and unrequited interventions (2007)
Working Paper: The Influence of Actual and Unrequited Interventions (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mie:wpaper:561

Access Statistics for this paper

More papers in Working Papers from Research Seminar in International Economics, University of Michigan Contact information at EDIRC.
Bibliographic data for series maintained by FSPP Webmaster ().