Influence Of Time Lags On Exchange Rate Fluctuations

Authors

  • Prof Semanti Debroy Sen

Abstract

This paper tries to highlight that for some specific set of countries there is an influence of growth
rate of GDP, past period growth rate of GDP and past exchange rate values have an influence over the current
exchange rates. With globalization and subsequent increase in cross border trade, the need to exchange
currency of one country with that of another country or with an international currency have increased
sufficiently in the past 2 decades. The number of units of one currency which is available against 1 unit of
another currency is called the exchange rate.
In the foreign exchange market, continuous exchange of currency takes place between the buyers and sellers
of foreign currency depending on the demand and supply of forex. The exchange rate is determined in this
market.

Published

2020-05-30

Issue

Section

Articles