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Characteristic market behaviors caused by intervention in a foreign exchange market

Takayuki Mizuno, Yukiko Umeno Saito, Tsutomu Watanabe, Hideki Takayasu

physics.data-anarXiv:physics/0508172

Abstract

In foreign exchange markets monotonic rate changes can be observed in time scale of order of an hour on the days that governmental interventions took place. We estimate the starting time of an intervention using this characteristic behavior of the exchange rates. We find that big amount of interventions can shift the averaged rate about 1 yen per 1 dollar in an hour, and the rate change distribution becomes asymmetric for a few hours.

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