The Impact of China-United States Trade War on the Relationship Among the Exchange Rates: The Case of China, Korea, and Japan

This paper aims to analyse the impact of China-United States trade war on the relationship of exchange rate growth of Chinese (CNY), Japanese (JPY), and South Korean (KRW) currency. The results of this study show that the volatility of JPY is the highest in the period of pre-trade war, while the volatility of KRW is the highest in the post-trade war period. The volatility of CNY was the smallest in both periods. And in the pre-trade war period, CNY, JPY and KRW were all positively correlated, and currencies appreciated or depreciated at the same time. In addition, the results show that the RMB is growing power over Japanese and South Korean markets in the wake of the China-United States trade war.