Review Question
In which of the following currencies would a European dealer not be able to get a short-dated FX transaction value today?
- Australian dollar
- Brazilian real
- Danish krone
- South African rand
Answer:
1) Correct. A European dealer would not be able to get a short-dated FX swap in this currency for value today because the Australian interbank payments system would have closed before European markets open.
Applying the Swap Points in Short-Dated Trades