1. DO TERRORIST ATTACKS IMPACT EXCHANGE RATE BEHAVIOR? NEW INTERNATIONAL EVIDENCE.
- Author
-
Narayan, Paresh Kumar, Narayan, Seema, Khademalomoom, Siroos, and Phan, Dinh Hoang Bach
- Subjects
- *
TERRORISM , *ECONOMIC impact , *FOREIGN exchange rates , *APPRECIATION (Accounting) , *DEPRECIATION , *FOREIGN exchange , *MONEY - Abstract
This study examines whether terrorist attacks affect bilateral exchange rates. Using historical 10-minute exchange rate data for 21 countries' currency vis-à-vis the U.S. dollar, we show that exchange rate returns of all countries are statistically significantly affected by terrorist attacks. Some exchange rates appreciate and some depreciate following a terrorist attack, some currencies experience exchange rate reversals while others experience a persistent effect. Generally, the effect declines but persists as terrorist attacks become stale information. ( JEL F31, F37) [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF