Exchange rate of India and its Volatility - Softcover

Rajaiah, Jayaraj

Softcover

ISBN 10: 3639718844 ISBN 13: 9783639718843

Publisher: Scholars' Press, 2014

Synopsis

Exchange rate volatility makes export earnings and the costs of intermediate goods uncertain. When prices cannot react to exchange rate fluctuations, profit margins have to absorb such volatility. A high level of exchange rate uncertainty, therefore, makes profits unpredictable and hence weighs on investment. Exchange rate volatility that gives rise to adjustment costs would persist for a protracted period. Investment decisions are changed in response to short term uncertainty in profitability of firms. This book reviews world and Indian exchange rate system. And it mainly studies Indian Rupee's volatility against 20 world currencies. The study employs two univariate models which are symmetric and asymmetric that capture common stylized facts of exchange rate volatility clustering and leverage effect. The empirical results show that the conditional volatility is an explosive process of Indian Rupee against the 20 World currencies. It is also found that the volatility of Indian Rupee is persistent against major currencies of the world.

About this title

About the Author

The author is a faculty of University of Petroleum & Energy Studies, Dehradun, India. He has completed his PhD on exchange rate volatility and international trade. He has published number of research articles in various journals of national and international repute in the area of international trade, macro finance and applied econometrics.

Edition details

• Publisher: Scholars' Press
• Publication date: 2014
• Language: English
• ISBN 10: 3639718844
• ISBN 13: 9783639718843
• Binding: Paperback
• Number of pages: 80