Interest rate parity is the fundamental equation that governs the relationship between interest rates and currency exchange rates for different countries. It is a theory in which the interest rate ...

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Policy changes could impact the historically cooperative relationship between the Federal Reserve and the European Central Bank (ECB). The CME EUR/USD Cross Currency Basis Index tracks the nearest ...

According to Jefferies, the euro has reached a bottom “for now” and will only go higher from here this year. “The mood on ...

Uncovered interest parity (UIP) has been almost universally rejected in studies of exchange rate movements. In contrast to previous studies, which have used shorthorizon data, we test UIP using ...

Advjiev, Stefan, Wenxin Du, Catherine Koch, and Hyun Song Shin. "The Dollar, Bank Leverage and Deviations from Covered Interest Parity." American Economic Review: Insights 1, no. 2 (September 2019): ...

Hitting parity is psychologically significant for ... They do take exchange rate movements into account when they set interest rates, but direct intervention to support the euro is extremely ...