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Losing sleep at the international market: Daylight Saving Time and exchange rates

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  • Nower, Michael

Abstract

This article examines the impact of the move into and out of Daylight Saving Time (DST) on bilateral exchange rates. When a country starts DST, the value of its currency depreciates, which is reversed when the country exits DST.

Suggested Citation

  • Nower, Michael, 2024. "Losing sleep at the international market: Daylight Saving Time and exchange rates," Economics Letters, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:ecolet:v:241:y:2024:i:c:s0165176524002970
    DOI: 10.1016/j.econlet.2024.111813
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    References listed on IDEAS

    as
    1. Joan Costa‐Font & Sarah Fleche & Ricardo Pagan, 2024. "The welfare effects of time reallocation: evidence from Daylight Saving Time," Economica, London School of Economics and Political Science, vol. 91(362), pages 547-568, April.
    2. Lisa A. Kramer & Mark J. Kamstra & Maurice D. Levi, 2000. "Losing Sleep at the Market: The Daylight Saving Anomaly," American Economic Review, American Economic Association, vol. 90(4), pages 1005-1011, September.
    3. Russell Gregory‐Allen & Ben Jacobsen & Wessel Marquering, 2010. "The Daylight Saving Time Anomaly In Stock Returns: Fact Or Fiction?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 33(4), pages 403-427, December.
    4. Ioannis Laliotis & Guiseppe Moscelli & Vassilis Monastiriotis, 2019. "Summertime and the drivin’ is easy? Daylight Saving Time and vehicle accidents," LEQS – LSE 'Europe in Question' Discussion Paper Series 150, European Institute, LSE.
    5. J. Michael Pinegar, 2002. "Losing Sleep at the Market: Comment," American Economic Review, American Economic Association, vol. 92(4), pages 1251-1256, September.
    6. Austin C. Smith, 2016. "Spring Forward at Your Own Risk: Daylight Saving Time and Fatal Vehicle Crashes," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 65-91, April.
    7. Matthew J. Kotchen & Laura E. Grant, 2011. "Does Daylight Saving Time Save Energy? Evidence from a Natural Experiment in Indiana," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1172-1185, November.
    8. Sexton, Alison L. & Beatty, Timothy K.M., 2014. "Behavioral responses to Daylight Savings Time," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 290-307.
    9. Christian Bünnings & Valentin Schiele, 2021. "Spring Forward, Don't Fall Back: The Effect of Daylight Saving Time on Road Safety," The Review of Economics and Statistics, MIT Press, vol. 103(1), pages 165-176, March.
    10. Blake Shaffer, 2019. "Location matters: Daylight saving time and electricity demand," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1374-1400, November.
    11. Michael Benjamin Goodwin & Fidel Gonzalez & Matías Fontenla, 2024. "The impact of daylight saving time in Mexico," Applied Economics, Taylor & Francis Journals, vol. 56(1), pages 22-32, January.
    12. Jonathan James, 2023. "Let there be light: Daylight saving time and road traffic collisions," Economic Inquiry, Western Economic Association International, vol. 61(3), pages 523-545, July.
    13. Jin, Lawrence & Ziebarth, Nicolas R., 2020. "Sleep, health, and human capital: Evidence from daylight saving time," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 174-192.
    14. Mark J. Kamstra & Lisa A. Kramer & Maurice D. Levi, 2002. "Losing Sleep at the Market: The Daylight Saving Anomaly: Reply," American Economic Review, American Economic Association, vol. 92(4), pages 1257-1263, September.
    15. Kountouris, Yiannis & Remoundou, Kyriaki, 2014. "About time: Daylight Saving Time transition and individual well-being," Economics Letters, Elsevier, vol. 122(1), pages 100-103.
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    More about this item

    Keywords

    Daylight Saving Time; Exchange rates;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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