Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/6631
Title: Emerging market exchange rates during quantitative tapering: The effect of US and domestic news
Authors: Tamgaç Tezcan, Ünay
Keywords: Emerging economies
Exchange rates
Google searches
Macroeconomic news
Quantitative tapering
Turkey
Issue Date: 2021
Publisher: Elsevier
Abstract: We analyze the impact of domestic and US-based news announcements of a large set of economic and policy-related fundamentals on the US dollar versus the Turkish lira exchange rate from 2013 to 2016. Since exchange rate behavior is closely related to political trust, we also incorporate the effect of domestic and global political uncertainty, using country indices based on Google search results. Contrary to previous findings, our results reveal that surprises related to the domestic economy have a greater effect on the exchange rate compared to surprises related to the US economy. Most important are the surprises related to domestic inflation and monetary policy, as well as foreign employment, while political uncertainty plays a minor role. There is also an asymmetry in the market response. Bad news about the US economy has more impact than good news, and good news about the domestic economy has more impact than bad news.
URI: https://doi.org/10.1016/j.ribaf.2021.101393
https://hdl.handle.net/20.500.11851/6631
ISSN: 0275-5319
1878-3384
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

Show full item record

CORE Recommender

SCOPUSTM   
Citations

2
checked on Sep 23, 2022

WEB OF SCIENCETM
Citations

4
checked on Sep 24, 2022

Page view(s)

30
checked on Dec 26, 2022

Google ScholarTM

Check

Altmetric


Items in GCRIS Repository are protected by copyright, with all rights reserved, unless otherwise indicated.