Break Tests: Application To Euro-dollar Exchange Rates

This article describes the procedures of breaks test developed recently and provides an application of these tests to the euro-dollar exchange rate. In particular, in these tests, the dates and the number of breaks in the exchange rate are not assumed to be a priori known and are endogenously determined by a statistical procedure. The tests on the exchange rate are conducted over the period 01/1999-05/2015. The results reveal that three significant breaks have accorded, namely, in 07 /2002, 04/ 2007 and 02/ 2011.