Pakistan and the efficiency of its foreign exchange market. We use monthly data from the State Bank of Pakistan and KIBOR rates … the information available. Market players may gain the benefits of volatility speculation due to market inefficiency …. Pakistan’s foreign exchange market is still small compared to those of other emerging economies, implying that substantial …

We show how bad and good volatility propagate through forex markets, i.e., we provide evidence for asymmetric … volatility connectedness on forex markets. Using high-frequency, intra-day data of the most actively traded currencies over 2007 … -- 2015 we document the dominating asymmetries in spillovers that are due to bad rather than good volatility. We also show …