Journal Article

Why are exchange rates so difficult to predict?

Abstract: A quarter-century quest hasn't found the elusive links between economic fundamentals and currency values. ; The U.S. dollar has been losing value against several major currencies this decade. Since 2001-02, the U.S. currency has fallen about 50 percent against the euro, 40 percent against the Canadian dollar and 30 percent against the British pound .

Keywords: Foreign exchange rates; Forecasting; Dollar, American;

Access Documents


Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Economic Letter

Publication Date: 2008

Volume: 3

Order Number: 6