Research Discussion Paper – RDP 9103 The Failure of Uncovered Interest Parity: Is it Near-Rationality in the Foreign Exchange Market?


The authors thank Malcolm Edey, Bill Griffiths and Nills Olekalns for their helpful comments, and Tim Long and David Moore for their clerical assistance. Any remaining errors are our responsibility. The views expressed in the paper are the authors and should not be attributed to the Reserve Bank of Australia.