The developed nation’s currency rate fluctuations on us doller - An impact study for the period 2004-2009

Abstract

If the exchange rate of the currency of a nation is lower in the international market, then the prices of the export products of that nation will be cheaper. By the law of the propensity of price leverage acting on the demand and supply in the market, the lower currency rate nation gets an advantage to boost their exports. But the increased demand for export will be offset if the quality, longevity, utility value and after sales infrastructure (wherever applicable) are not good. The present paper is carried out to answer this. Through this paper an attempt is made to study the association ship between the Dollar, Euro, Yuan and Yen. The reason for selecting the Euro Yuan and Yen has been that they are currencies of developed nation. There is huge trading between the nations therefore the exchange rate also fluctuate accordingly depending on the export and import of the respective countries. In this project various statistical tools are applied so that this relationship can be statistically examine to find out the connection between them. The research further observes the degree of their impact so as to find out highly impacting currency. The research would help in identifying the currency which leads to maximum affect on U.S.DOLLAR so that one can know which currency to follow in order to observe change in U.S.DOLLAR

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