In the preceding Comment on our JIBS paper [1], three basic claims are made:The results in [1] are contrary to those reported elsewhere. The contradiction may be due to certain weakness in the methodology employed by us.Based on a “direct approach” three currencies (out of the fourteen we...

The analysis of the distribution of foreign exchange rate changes provides a description of the behavior of foreign exchange rates and its determining underlying process. The application of empirical methodologies or further theoretical developments is limited by the nature of this distribution....