Determinants of Indian Exchange Rate Submitted To: Dr. S K Mathur Associate Professor of Economics Department of Humanities and Social Sciences Indian Institute of Technology Kanpur Submitted By: Sharad Gupta (10666) Abstract This Paper attempts to find out the determinant of INR-USD exchange rate. We want to see the interdependence of Exchange rate on some variables like Inflation‚ Money Supply‚ Foreign Reserve‚ Fiscal Deficit and Stock market. This will also attempt to analyze
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"Chinese Foreign Reserves to Exceed $1 Trillion" The Times‚ March 29‚ 2006‚ Guijun L. and Schramm R. "China ’s Progression toward Currency Convertibility‚" The Chinese Economy‚ V37: (2004)‚ 78-100. Lu D. "China ’s Capability to Control its Exchange Rate‚" in China Economic Review‚ V15: (2004)‚ 343-347. Ping L. "Challenges for China ’s Banking Sector and Policy Responses‚" China Banking Regulatory Commission‚ November 14-16‚ 2003 Renminbi‚" China Economic Review‚ V16‚ (2005): 103–117. Tung C
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12: INTERNATIONAL TRADE AND EXCHANGE International trade - is the exchange of goods and services between countries. Export - A product that is sold to the global market Import - A product that is bought from the global market Comparative Advantage – a lower relative or comparative opportunity cost than that of another person‚ producer or country. Terms of Trade- the rate at which units of one product can be exchanged for units of another product. Foreign Exchange Market – a market at which
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International Journal of Global Business‚ 7 (1)‚ 59-76‚ June 2014 59 Examining the Effects of Currency Depreciation on Trade Balance in Selected Asian Economies Alemu‚ Aye Mengistu Assistant Professor‚ SolBridge International School of Business‚ Daejeon‚ South Korea. ayem2011@solbridge.ac.kr Jin-sang‚ Lee Specialist Professor‚ Duksung Women’s University‚ Seoul‚ South Korea. jinslee0209@duksung.ac.kr Abstract The aim of this study is to investigate how depreciation could affect the export
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Chapter 10 Measuring Exposure to Exchange Rate Fluctuations Lecture Outline Is Exchange Rate Risk Relevant? Transaction Exposure Estimating “Net” Cash Flows in Each Currency Measuring the Potential Impact of the Currency Exposure Assessing Transaction Exposure Based on Value-at-Risk Economic Exposure Economic Exposure to Local Currency Appreciation Economic Exposure to Local Currency Depreciation Economic Exposure of Domestic Firms Measuring Economic Exposure Translation Exposure Does Translation
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International Arbitrage and Interest Rate Parity Lecture Outline International Arbitrage Locational Arbitrage Triangular Arbitrage Covered Interest Arbitrage Comparison of Arbitrage Effects Interest Rate Parity Derivation of Interest Rate Parity Determining the Forward Premium Graphic Analysis of Interest Rate Parity How to Test Whether Interest Rate Parity Exists Interpretation of Interest Rate Parity Does Interest Rate Parity Hold? Considerations When Assessing Interest Rate Parity Changes in Forward
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Greavu 1 John Greavu WRIT 1301 Mr. Anderson 25 OCT 2011 Reading Response #5: Time’s Exchange Rate “Time is money”: Bejamin Franklin‚ Founding Father of the United States of America seemed to imply his country’s priorities fairly well in his famous three-word quote. Time and money are valued almost above all in the U.S.‚ and sacrificing one or the other usually is at least a minor struggle for most Americans. In the capitalist society that we live in‚ people are always competing. They are always
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earnings by all 7‚691 companies. Total forex earnings of these 1590 companies account for around 60% of India’s exports of goods and services in FY11. These companies have further been classified into 19 broad industry groups1. We use net foreign exchange earnings of these companies as a proxy for their forex exposure. Based on trends observed in FY11‚ we rank industries on their expected forex risk‚ in the absence of hedging. Results Of the 19 industries‚ 4 have been net gainers in forex earnings
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Assignment: Integrative Problem - Exchange Rate Behavior Data: Beginning of year Spot rate of £ = $1.596 Spot rate of Australian dollar (A$) = $.70 Cross exchange rate: £1=A$2.28 One-year forward rate of £1= A$.71 One-year U.S. interest rate = 8.00% One year British interest rate = 9.09% One-year Australian interest rate = 7.00% Question 1 Determining whether triangular arbitrage is feasible and‚ if so how it should be conducted to make a profit. Background: Triangular arbitrage
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ABSTRACT This study examines the medium term forecasting of inflation rate in Bangladesh. Four important macroeconomic variables which have inter relationship among themselves are considered in the study and three different VEC models are estimated starting from a two-variable model including money supply and CPI‚ and sub-sequentially adding some financial variables such as real GDP and nominal exchange rates. This paper empirically explores the present relationship between inflation and macroeconomic
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