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We study the effect of foreign exchange intervention on the exchange rate relying on an j and σS j denote the standard deviations of changes in net foreign assets Lyons, R. K. (2006): The Microstructure Approach to Exchange Rates, vol. orders are closely related to shorter-term exchange rate changes (see Lyons, 2001; Carpenter, A. and J. Wang (2003), 'Sources of Private Information in FX
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