Abstract: The research on the response of forward exchange markets to monetary policy is one of the hot spots in open economy macroeconomics and international finance. In this paper,we present that there exist some fixed points on the forward curve which have no response to the adjustment of interest rates. At first,using interest rate parity theory,we develop a static model of the term structure of forward exchange rates. Based on this model,we propose the condition for existence and uniqueness of fixed points on the forward curve by the definition of the fixed points,when the term structure of interest rate expresses various changes caused by interest rate adjustment.Then,based on the macroeconomic situations and monetary policy implemented by US and Japan,we have selected five typical cases to verify theory,which are common in the real monetary policy. The empirical results show that there exist some fixed points on the forward curve when the term structure of interest rates and spot exchange rate meets certain conditions.

Key words: interestrate adjustment, term structure of interest rates, erm structure of forward exchange rates, fixed points