Do Spot Rate Volatility and commodity exchange Intervention by the financial institution Impact the

Abstract This study investigates the impact of charge per unit volatility likewise as futures market intervention on forward premia within the Indian case. The study finds that the charge per unit volatility completely impacts month-over-month change in forward premia. In fact, inclusion of the charge per unit volatility is found to scale back the out-of-sample forecast error of forward premia. futures market intervention, however, isn't found to own any important impact on the forward premia.

Keywords: Foreign exchange market, forward premia, rate differential, charge per unit volatility, futures market intervention

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