This paper presents a review of previous literature on determinants of exchange rates in two countries in the Asia-Pacific region: Japan and Thailand. These two countries were selected because of their economic similarities, including a floating exchange rate regime. The purpose of the study was to investigate the literature on exchange rate determinants and compare the two countries. A selection of studies for both Japan and Thailand showed that while there were similarities between the two countries, there were also some significant differences. This could indicate a significant difference in the exchange rate dynamics of each country, but it is also representative of a plurality of theoretical models and methodologies used in the studies. Furthermore, the findings showed that there were inconsistencies in studies within the same country, even when the time period was relatively similar. No direct comparisons between Japan and Thailand were identified. The study offers several opportunities for future research.
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