Short Term Exchange Rate Fluctuations in India: An Exploratory Study
DOI:
https://doi.org/10.1956/jge.v12i1.419Abstract
This paper does an exploratory analysis of factors responsible for the volatile fluctuations in the exchage rate of Indian rupee duirng the calendar year of 2013. The series Exchange Rate (RBI Reference Rate), MIBOR Rate, Crude Oil Pirce, Foreign Reserves, Gold rate and Nifty were found to be cointegrated and long run and short relationships have been explored by VECM.References
Meese, R., Rogoff, K. (1983). "The Out-of-Sample Failure of Empirical Exchange Rate Models: Sampling Error or Misspecification?" National Bureau of Economic Research, Inc., pp 67-112
Abdalla, I. S. A., Murinde, V. (1997), “Exchange Rate and Stock Price Interactions in Emerging Financial Markets: Evidence on India, Korea, Pakistan, and Philippinesâ€, Applied Financial Economics, vol.7, pp 25-35
Simon W.L.S. (1997), “Is There Life Outside the ERM? An Evaluation of the Effects of Sterling's Devaluation on the UK Economyâ€, International Journal of Finance and Economics, 2, pp 199-216
Taylor, L. (2001) “Argentina: A Poster Child for Failure of Liberalised Policies?†Challenge/November–December. 44, 6, pp 28–44.
Edwards, S. (2001) “Exchange Rate Regimes, Capital Inflows and Crisis Preventionâ€, NBER and University of California (Working Papers No. 8529).
Muhammad, Naeem and Rasheed, Abdul (2002), “Stock Prices and Exchange Rates: Are They Related? Evidence from South Asian Countriesâ€, The Pakistan Development Review, vol. 41(4), pp.535-550.
Harberger, A. (2004), “Economic Adjustment and the Real Exchange Rateâ€, in S. Edwards and L.Ahamed (eds.), “Economic Adjustment Exchange Rates in Developing Countriesâ€, University of Chicago Press, 10, pp 308-321.
Husain, A.M., Mody, A., Rogoff, K.S., (2004), “Exchange Rate Regime Durability and Performance in Developing Versus Advanced Economiesâ€, Journal of Monetary Economics, 52(1), pp 35-64.
Due, P., Sen, P. (2006) “Capital flow Volatility and Exchange Rates: The Case of India†Central for Development Economics, Department of Economics, Delhi School of Economics. (Working Paper No. 144).
Starvarek Daniel (2009), “Assessment of the exchange rate convergence in Euro-candidate countriesâ€, The Amefiteatru Economic Journal, Academy of Economic Studies – Bucharest, Romania, vol. 11 (25), pp 159-180
Abdalla, I. S. A., Murinde, V. (1997), “Exchange Rate and Stock Price Interactions in Emerging Financial Markets: Evidence on India, Korea, Pakistan, and Philippinesâ€, Applied Financial Economics, vol.7, pp 25-35
Simon W.L.S. (1997), “Is There Life Outside the ERM? An Evaluation of the Effects of Sterling's Devaluation on the UK Economyâ€, International Journal of Finance and Economics, 2, pp 199-216
Taylor, L. (2001) “Argentina: A Poster Child for Failure of Liberalised Policies?†Challenge/November–December. 44, 6, pp 28–44.
Edwards, S. (2001) “Exchange Rate Regimes, Capital Inflows and Crisis Preventionâ€, NBER and University of California (Working Papers No. 8529).
Muhammad, Naeem and Rasheed, Abdul (2002), “Stock Prices and Exchange Rates: Are They Related? Evidence from South Asian Countriesâ€, The Pakistan Development Review, vol. 41(4), pp.535-550.
Harberger, A. (2004), “Economic Adjustment and the Real Exchange Rateâ€, in S. Edwards and L.Ahamed (eds.), “Economic Adjustment Exchange Rates in Developing Countriesâ€, University of Chicago Press, 10, pp 308-321.
Husain, A.M., Mody, A., Rogoff, K.S., (2004), “Exchange Rate Regime Durability and Performance in Developing Versus Advanced Economiesâ€, Journal of Monetary Economics, 52(1), pp 35-64.
Due, P., Sen, P. (2006) “Capital flow Volatility and Exchange Rates: The Case of India†Central for Development Economics, Department of Economics, Delhi School of Economics. (Working Paper No. 144).
Starvarek Daniel (2009), “Assessment of the exchange rate convergence in Euro-candidate countriesâ€, The Amefiteatru Economic Journal, Academy of Economic Studies – Bucharest, Romania, vol. 11 (25), pp 159-180
Downloads
Published
22.03.2016
How to Cite
Adhikari, C. S. and Sachdeva, J. K. (2016) “Short Term Exchange Rate Fluctuations in India: An Exploratory Study”, Journal of Global Economy, 12(1), pp. 36–49. doi: 10.1956/jge.v12i1.419.
Issue
Section
Articles
