Idiosyncratic variation of the US Dollar

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 144
Issue: C
Pages: 7-9

Authors (2)

Kunkler, Michael (not in RePEc) MacDonald, Ronald (University of Glasgow)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We address the role of the US dollar when constructing a set of systematic (statistical) factors from a group of US dollar exchange rates. Researchers usually regard the US dollar as wholly systematic. In this paper, however, we are able to decompose the US dollar and other currencies into systematic and idiosyncratic factors using the global prices for currencies, rather than US dollar exchange rates. Using monthly data over a period of more than 44 years, we find that approximately 25% of the total variation for the US dollar can be attributed to idiosyncratic variation.

Technical Details

RePEc Handle
repec:eee:ecolet:v:144:y:2016:i:c:p:7-9
Journal Field
General
Author Count
2
Added to Database
2026-01-25