Explanation:
Since the 2007-2009 financial crisis, the cross-currency basis for most major currencies relative to the U.S. dollar (USD) has consistently been negative.
Key Reasons:
Market Impact:
This persistent negative basis represents a breakdown of traditional covered interest parity that has become the "new normal" in post-crisis markets.
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Q-80. Since the financial crisis of 2007–2009, the cross-currency basis for most major currencies relative to the U.S. dollar (USD) has consistently been:
A
Positive
B
Negative
C
Zero
D
Volatile with no clear trend