Aggregate real exchange rate persistence through the lens of sectoral data

► Highly disaggregated data for a group of EU-15 real exchange rates is analyzed. ► It is shown that a few sectors are responsible for the high levels of persistence. ► Quantile regression is employed to investigate the sources of persistence. ► Variables related to the tradability of goods are not significant. ► Price stickiness and the market structure of the inputs are significant.