An Assessment of the Relative Position of Indian Rupee vis-a-vis Selected Asian Currencies
DOI:
https://doi.org/10.1956/jge.v20i2.720Keywords:
Equation of Best-Fit, Indian Rupee, Relative Position, Kendall’s Concordance Analysis, Relative Growth RatesAbstract
The article aimed to examine the relative position of Indian rupee vis-a-vis those of some other
selected Asian economies (viz., China, Pakistan, Nepal, Sri Lanka, Indonesia, Malaysia,
Philippines, Myanmar, Japan and Singapore) throughout the period from January 2001 to
March 2021. These currencies have been estimated using nineteen functional forms and the
selection of best-fit functional form was based on minimum value of Akaike’s Information
Criterion (AIC). The coefficients have been derived on the basis of the selected functional form
and subsequently relative growth rates have been calculated at different time intervals. The
study brings out that the currency of Singapore has been the most-stable one, followed by that
of Japan and then of China. On other extreme, currency of Myanmar has been the most-fragile
one, followed by that of Pakistan and then of Sri Lanka. So far as India is concerned, position
of its currency has just been mid-way, with a pooled rank of 5 in the group of 11 currencies
which indicates moderate position of Indian rupee among the currencies that are most fragile
one and most stable one.
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