<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>0186-1042</journal-id>
<journal-title><![CDATA[Contaduría y administración]]></journal-title>
<abbrev-journal-title><![CDATA[Contad. Adm]]></abbrev-journal-title>
<issn>0186-1042</issn>
<publisher>
<publisher-name><![CDATA[Universidad Nacional Autónoma de México, Facultad de Contaduría y Administración]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S0186-10422023000400109</article-id>
<article-id pub-id-type="doi">10.22201/fca.24488410e.2023.4643</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[Does FX market in India integrated to exchange rate theories? a review amidst COVID-19]]></article-title>
<article-title xml:lang="es"><![CDATA[¿El mercado de divisas en la India se integra a las teorías del tipo de cambio? una revisión en medio de COVID-19]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Aravind]]></surname>
<given-names><![CDATA[M]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,University of Kerala TKM Institute of Management ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>India</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>12</month>
<year>2023</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>12</month>
<year>2023</year>
</pub-date>
<volume>68</volume>
<numero>4</numero>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_arttext&amp;pid=S0186-10422023000400109&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_abstract&amp;pid=S0186-10422023000400109&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_pdf&amp;pid=S0186-10422023000400109&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract The exchange rate theories argue that the parity between two currencies is determined by various macroeconomic factors prevailing across economies. It is quite interesting to examine what happened to currency exchange rates in a period of inactivity for the overall economies due to COVID-19 outbreak. In this context a study was carried out during the period of turbulence to empirically test whether foreign exchange market in India moves in accordance with the principles of exchange rate theories. The bound test of co-integration (Pesaran,et.al., 2001) was employed to examine the evidence of a long-run relationship between the macroeconomic variables with the exchange rate of hard currencies such as USD, EUR, GBP and JPY against INR. The cross sectional relationship was further validated by using auto regressive distributed lag (ARDL) model. The absolute version of purchasing power parity theory (PPP) is evident in the Indian foreign exchange market as the analysis established a strong integration of Wholesale Price Index (WPI) and Consumer Price Index (CPI) with leading hard currencies such as USD, EUR and JPY. The association of 364 days Treasury bill return (TBR) and government Bond Return (GBR) further confirmed the postulation of Interest Rate Parity (IRP) theory as any increase in interest rate can cause exchange rate depreciation to INR. Results of this study add to the existing literature by confirming the bondage between price levels across the economies and the exchange rates during COVID-19 crisis. The result urges active market intervention from the policymakers even if the economy is not fully functional.]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen Las teorías del tipo de cambio argumentan que la paridad entre dos monedas está determinada por varios factores macroeconómicos que prevalecen a través de sus economías. Es bastante interesante examinar qué sucedió con los tipos de cambio en un período de inactividad para las economías en general debido al brote de COVID-19. En este contexto, se llevó a cabo un estudio durante el período de turbulencia para probar empíricamente si el mercado de divisas en la India se mueve de acuerdo con los principios de las teorías del tipo de cambio. Se empleó la prueba de cointegración ligada (Pesaran, et.al., 2001) para examinar la evidencia de una relación a largo plazo entre las variables macroeconómicas con el tipo de cambio de monedas duras como USD, EUR, GBP y JPY frente a INR. La relación de corte transversal se validó aún más mediante el uso del modelo de rezagos distribuidos autorregresivos (ARDL). La versión absoluta de la teoría de la paridad del poder adquisitivo (PPA) es evidente en el mercado de divisas de la India, ya que el análisis estableció una fuerte integración del Índice de Precios de Mayoreo (WPI) y el Índice de Precios al Consumidor (CPI) con las principales monedas duras como USD, EUR y JPY. La asociación del rendimiento de los Certificados de la Tesorería (TBR) a 364 días y el rendimiento de los bonos del gobierno (GBR) confirmó aún más la postulación de la teoría de la paridad de la tasa de interés (IRP), ya que cualquier aumento en la tasa de interés puede causar una depreciación del tipo de cambio a INR. Los resultados de este estudio se suman a la literatura existente al confirmar la vinculación entre los niveles de precios en las economías y los tipos de cambio durante la crisis de COVID-19. El resultado exige una intervención activa en el mercado por parte de los formuladores de políticas, incluso si la economía no está funcionando completamente.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[FX market]]></kwd>
<kwd lng="en"><![CDATA[PPP theory]]></kwd>
<kwd lng="en"><![CDATA[IRP theory]]></kwd>
<kwd lng="en"><![CDATA[Fisher effect]]></kwd>
<kwd lng="en"><![CDATA[ARDL model]]></kwd>
<kwd lng="es"><![CDATA[mercado de divisas]]></kwd>
<kwd lng="es"><![CDATA[teoría de la PPA]]></kwd>
<kwd lng="es"><![CDATA[teoría del IRP]]></kwd>
<kwd lng="es"><![CDATA[efecto Fisher]]></kwd>
<kwd lng="es"><![CDATA[modelo ARDL]]></kwd>
</kwd-group>
</article-meta>
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