In an important foreign exchange market the price quoted is constantly on the move.
With larger transfers (property, large payments, immigration, or business transactions), or frequent ones (remittances, pensions or mortgages), clients can sign up with traditional foreign exchange firms to get a quote.
This paper analyzes the effect of nine categories of news announcements on the quoting activity of individual foreign exchange (FX) dealers on the Euro/Dollar exchange rate from May to October 2001.
"The financial stability of Europe will help the stability of foreign exchange rates, including the yen," Mr. Aso was quoted by the Nikkei newspaper as saying.
In the foreign exchange market, the dollar rose 3.3percentt as the euro was quoted at 88.62 cents.
At present, hedge funds wanting to trade foreign exchange usually ring up their bankers and ask for a quote.
"If the central bank stops buying foreign exchange, the yuan will appreciate sharply, which is unacceptable," Li was quoted by the report on the website: www.caijing.com.cn.
China's central bank has to keep buying foreign exchange to limit yuan gains, a report on the website of Caijing magazine quoted Li Bo, head of the second monetary policy department at the People's Bank of China, as saying.
The introductory quote is not remarkable for emphasising the close connection between the foreign exchange and money markets, which features prominently in the interest-parity condition, but for having been taken from a guide first published back in 1891 to provide "A Money-Market Primer and Key to the Exchanges".
Quoting activity is measured by the frequency of price revisions in the Euro/Dollar foreign exchange market.
