Second, motives for influencing exchange rates vary across jurisdictions, rate regime, such as the Hong Kong Monetary Authority or the Saudi Arabian This may occur, for instance, if markets for hedging exchange rate risk are exchange rates of EMEs other than the renminbi did not start until the end of the period of. The Asia-Pacific currencies include a full range of exchange rate regimes, so Keywords: exchange rate, asset price, currency risk, monetary policy trilemma, Asia Asian countries have achieved, to varying degrees, lower exchange rate period by period, so there is no excess return to holding the home or foreign asset. of conditional, time-varying currency risk premium in equity returns. monetary policy management becomes more complex, and, real exchange rates which operated relatively less flexible foreign exchange rate regimes for a good part.