International Journal of Business and Economics Research

Volume 2, Issue 4, August 2013

  • Do Carry Trades in the Foreign Exchange Markets Influence Stock Prices

    Yutaka Kurihara

    Issue: Volume 2, Issue 4, August 2013
    Pages: 84-90
    Received: 25 August 2013
    Published: 20 September 2013
    Abstract: Carry trades have been shown to lead to significant changes in foreign exchange markets by producing shocks to interest rate differentials. This study uses fundamentals and the chartist model for the foreign exchange markets in which market participants can choose to become carry traders. It shows that carry trades play an important role in determi... Show More