IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v93y2024ics1057521924000917.html
   My bibliography  Save this article

Donald Trump's tweets, political value judgment, and the Renminbi exchange rate

Author

Listed:
  • Zhang, Qisi
  • Frömmel, Michael
  • Baidoo, Edwin

Abstract

This study examines the correlation between former U.S. President Donald Trump's China-related tweets and the daily return and conditional volatility of onshore (CNY) and offshore (CNH) Renminbi exchange rates. Using sentiment analysis techniques to quantify political value judgment, we find that Trump's sentiment towards China has a significantly negative relationship with the CNH value but no significant linkage with the CNY price. During the trade tension period, both markets' conditional volatility responded to the tweets, with the CNH daily return displaying a heightened reaction to the sentiment. Our results demonstrate the importance of considering market conditions when analyzing the effects of political rhetoric on different segments of the Renminbi exchange rate market.

Suggested Citation

  • Zhang, Qisi & Frömmel, Michael & Baidoo, Edwin, 2024. "Donald Trump's tweets, political value judgment, and the Renminbi exchange rate," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000917
    DOI: 10.1016/j.irfa.2024.103159
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521924000917
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2024.103159?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000917. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.