Betting Against Uncovered Interest Rate Parity
D I S S E R T A T I O N
of the University of St. Gallen,
Graduate School … interest rate dif-
ferentials by borrowing in low-yield currencies or by investing in high-yield cur-
rencies. Uncovered … interest rate parity (UIP) assumes that high-yield currencies
depreciate and that low-yield currencies appreciate so that …