In this paper, we analyse the relationship between the currency carry return and volatility and liquidity risk factors … outperformance for volatility ones especially the global FX volatility risk factor. Consistent with the poor performance of currency … carry trades during high FX volatility regime, we also show that the well-established negative slope coefficient in the Fama …

This paper proposes an explanation of the shifts in the volatility of exchange rate returns that relies on standard … uncertainty by making inference on the models and their parameters - a mechanism I call model learning. I show how model learning … may lead agents to focus excessively on a subset of fundamental variables. As a result, exchange rate volatility is mainly …

increases strengthen these currencies to different extents. In contrast, heightened geopolitical uncertainty and associated oil …

emphasize the significance of managing exchange rate volatility and reducing uncertainty to ensure economic stability and foster … uncertainty in the specific context of South Africa. By specifically focusing on exchange rate misalignment uncertainty, this … uncertainty and economic growth, there is a dearth of studies focusing on the particular issue of exchange rate misalignment …