Interlinkages in Asia-Pacific Non-Deliverable Forward (NDF) Markets (A Comparison between Pre and Post Currency Futures Era)Saravanan A1* and Velmurugan PS2
- *Corresponding Author:
- Saravanan A
Research Scholar, Department of Commerce
School of Management, Pondicherry University
E-mail: [email protected]
Received Date: November 12, 2014; Accepted Date: February 25, 2015; Published Date: March 04, 2015
Citation: Saravanan A, Velmurugan PS (2015) Interlinkages in Asia-Pacific Non- Deliverable Forward (NDF) Markets (A Comparison between Pre and Post Currency Futures Era). J Stock Forex Trad 4:143. doi: 10.4172/2168-9458.1000143
Copyright: © 2015 Saravanan A, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This paper examines the inter-linkages in Asia Pacific, currency market before and after the introduction of currency futures in India using simple correlation and Granger causality tests. It is found that inter-linkages among Asia- pacific markets have increased after the emergence of currency future, and Asia-Pacific NDF markets are closely linked with one another. Further, Indonesian market does not seem to have any influence on the other Asia-Pacific markets except India and similarly is not much affected by any market other than the China, India and Philippines. Vietnam market seems to be isolated from the region. Indonesia market appears to dominate other markets in the region and its effect on them is even greater than that of China. All eight Asia-Pacific markets affect one another and their effects are transmitted within three days in most of the cases.