Many structural models have attempted to explain the behaviour of exchange rates under the floating rate regime. Meese and Rogoff (1983) found that a random walk model performs at least as well as various structural and time series models for exchange rates in terms of out-of-sample forecast....

It has been found in the literature that the overnight Eurodollar rate and the effective Fed funds rate exhibit similar calendar-day effects caused by the Federal Reserve regulations and accounting conventions and characteristics of the Fed funds market. However, it was not documented whether...