There has been mixed evidence regarding the existence of rational bubbles in the foreign exchange markets. This paper introduces recently developed sequential unit root tests into the analysis of exchange rates bubbles. We find strong evidence of explosive behavior in the nominal Sterling-dollar...

This paper aims to address the relatively limited attention given to the examination of exchange rate misalignment uncertainty in the specific context of South Africa. By specifically focusing on exchange rate misalignment uncertainty, this study fills a crucial gap in the literature and gains a...