International trade and its expansion with the rise of modern global economies create a need for buying, selling or borrowing a multiplicity of foreign currencies. A key aspect of currency exposures is that a company might add extra risk due to selling or buying foreign currency due to the volatile exchange rate influenced by a variety of exogenous and endogenous factors. We have conducted a fairly comprehensive computational investigation of the exchange rate using time series based on econometric analysis. We choose the exchange rate between the US dollar and the British pound because of the pounds influential position in the US economy. It is important for a manager to understand the exchange rate movement for his / her strategic decision-making. This study performs an empirical time series analysis of the exchange rate movements, and serves as a basic exploratory effort on the understanding of the exchange rate risk. We hope our empirical investigation may provide some guidance or information that is useful for further theoretical research endeavors.
Journal of Emerging Trends in Economics and Management Sciences
A computational analysis of exchange rate time series.
Journal of Emerging Trends in Economics and Management Sciences,
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