Review Question  

In which of the following currencies would a European dealer not be able to get a short-dated FX transaction value today?
  1. Australian dollar
  2. Brazilian real
  3. Danish krone
  4. 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