On 04/08/05, the UK monetary policy authorities cut short term interest rates by 0.25%, but the exchange
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On 04/08/05, the UK monetary policy authorities cut short term interest rates by 0.25%, but the exchange rate of the Pound barely moved during the day. Can one therefore deduce that interest rates have no effect on exchange rates?
Exchange RateThe value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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No because a 025 cut in the Bank of Englands interest rate may have been exactly what the market an...View the full answer
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Related Book For 
Exchange Rates and International Finance
ISBN: 978-0273786047
6th edition
Authors: Laurence Copeland
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