Does COVID-19 play any role in the asymmetric relationship between oil prices and exchange rates? Evidence from South Korea

Jungho Baek

doi:10.1016/j.eap.2022.03.015

Does COVID-19 play any role in the asymmetric relationship between oil prices and exchange rates? Evidence from South Korea

Econ Anal Policy. 2022 Jun:74:553-559. doi: 10.1016/j.eap.2022.03.015. Epub 2022 Mar 23.

Author

Jungho Baek¹

Affiliation

¹ Department of Economics, College of Business and Security Management, University of Alaska Fairbanks, United States of America.

Abstract

The primary contribution of the present research is to explicitly take into consideration the role that the current outbreak of coronavirus diseases proxied by the COVID-19 index plays when studying the asymmetric impact that oil prices have on the South Korean won (KRW)/US dollar (USD) exchange rate. We discover that the COVID-19 pandemic seems to have been a significant factor in affecting the asymmetric impact of oil prices on the KRW/USD rate in both the short and long run.

Keywords: Asymmetry; COVID-19; KRW; Oil prices; South Korea.