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Exchange Rate Forecasting Methods by Senthilkumaran Ramachandran is a document available to read on EtoBox.
What is Exchange Rate Forecasting Methods about?
There are two main methods for forecasting future exchange rates: purchasing power parity theory and interest rate parity theory. Purchasing power parity theory states that exchange rates will change over time in relation to inflation rates in the originating countries. Interest rate parity theory states that exchange rates can be predicted from differences in interest rates between currencies. Both theories use a formula that divides the expected inflation or interest rate in one country by the other count
- Author
- Senthilkumaran Ramachandran
- Language
- EN