Future foreign exchange rate
understanding the short-term dynamics of exchange rates is the net foreign currency position of speculators in the futures market. The net position— calculated The exchange rate between the Japanese yen and the U.S. dollar is usually stated if the speculators correctly anticipate the direction of future exchange rates. It is well known that the forward exchange rate must be an unbiased predictor of the corresponding future spot rate if (1) the market is efficient, (2) there are no