ABSTRACT
This paper begins by providing an overview of the four major exchange rates, euro/dollar, pound/dollar, yen/dollar, and yuan/dollar, from September of 2009 to September of 2019, using monthly data. We make analysis on the trends on each of the four currencies, and identify the major events that influenced the changes. We find out that Japanese Yen has the highest volatility, while Chinese Yuan has the lowest volatility over the 10-year research period. This paper has important managerial implications for MNCs decisions to reduce/manage exchange rate risk. Our research also provides investment implications for investors.
Keywords
exchange rate, volatility, market events, Euro, Pound, Yen, Yuan