The Foreign Exchange Market, which is the largest and most important market in the world with an average daily turnover estimating to be $3.98 trillion, is still continuing to grow. The evolution of sport from a mere pastime to a multi-billion dollar industry has infiltrated every aspect of society. This paper researches and reports the findings of sport outcomes on the Foreign Exchange Market and effect it has on the exchange rates returns. It investigates 76 countries in four sports, football (soccer), rugby and cricket over the last five World Cup competitions as well as ice hockey using data from the Winter Olympics. The data collected is from 1990 until 2007. Additionally this research is motivated by literature on the effect of sports success on the stock market that showed sport results have an effect on stock returns and the strong link between sport outcomes and mood, which is significantly noted in sports like football (soccer). Psychological evidence also unveils a strong relationship between a sport team‟s success and fan self-esteem. The findings in this paper show a statistical significance of sport outcomes on the exchange rate returns especially in football (soccer) being. The overall sport sample shows a p-value of p = 0.084 whereas football (soccer) shows p-value of p = 0.034. The sample of football (soccer) matches especially for group matches, which show that there is a bigger negative effect for losses than the positive effect for wins. In this paper the win effect for hockey is also documented. The insignificant value of the F stat indicates that the model used for regression could either be a weak model or that the huge Foreign
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Exchange Market has too many variables that could possibly allow sport outcomes to affect the exchange rate return in the short run.

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