In the realm of Hegemonic Politics, this paper explores the effect of domestic politics on the behaviour of international currency markets. More specifically, for the first time we gauge the impact of a divided government on the exchange rate volatility of three currencies, namely, the Japanese...

Purpose - The authors explore the relationship between the exchange rate, bond yield and the stock market as well as the effect of capital market dynamics on the exchange rate before and during the COVID-19 pandemic. Design/methodology/approach - The authors employ a non-linear autoregressive...