Determination of Forward Exchange Rate Premiums for Southeast Asian Countries

Abstract

In the macroeconomic the forward premium is still the puzzle We cannot avoid the importance of how spot exchange rate variety daily change For the international world trade we cannot deny how the exchange rate approximately affects their business In the previous study the second strategy is to hedge the risk The agent forecasts the future interest rate and hedging decision (Moosa 2004) However their forecast is accurate to predict the future exchange rate relative to the exchange rate (Bergin 2006) Similar results have been generated by the stale preventive decisions to prevent this risk The purpose of this study is to estimate the effects of fluctuation in the exchange rate at lengths the forward premium in Southeast Asia According to this study we collected the data starting from 2011 to 2019 which is the best moment of the research in term of before the COVID-19 epidemic in five South East Asia countries under separately 92 observations for each country total 460 Indeed we can perceive the result that spot rate fluctuation Interest rate differential and forward market intervention have been found the significant impact on the forward premium in Thailand For Singapore the spot rate fluctuation has significant impact on forward premium

Date of Award	2020
Original language	English
Supervisor	Tse-Shih Wang (Supervisor)