Discover how a nation's balance of payments can affect its currency's exchange rate and the dynamics of its relationship in ...

Discover how exchange rates influence the economy, affecting job markets, inflation, and costs of goods. Learn about their indirect impacts on everyday life.

We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...

Using tools like forwards and options, currency-neutral funds hedge foreign-exchange risks. Investing in currency-neutral funds can protect against losses from unfavorable exchange-rate shifts.