in the empirical analysis consist of daily observations of implied volatilities for OTC options on the euro, Japanese yen …, the results indicate that the euro is the dominant currency, as the implied volatility term structure of the euro is found … to affect all the other volatility term structures, while the term structure of the euro appears to be virtually …

The paper tests for nonlinearities in the adjustment of the euro exchange rate towards purchasing power parity (PPP …). It presents new survey based evidence consistent with non-linear patterns in euro exchange rate dynamics. Moreover, based … reversion in euro exchange rates increases non-linearly with the magnitude of the PPP deviation. Accordingly, while the euro …

Foreign exchange reserve accumulation has risen dramatically in recent years. The introduction of the euro, greater … currencies. Making various assumptions on expected currency returns and the variance-covariance structure, we assess how the euro …-free) currency. (ii) The optimum portfolios show a much lower weight for the euro than is observed. This suggests that the euro may …