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    Anonymous duzV27Mx3
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    Forecasting exchange rates is important for international business planning as trade transactions are set in the future and accurate forecasts help evaluate risks and opportunities. There are two main approaches to exchange rate forecasting: the fundamental approach which analyzes economic factors like inflation rates and GDP, and the technical approach which uses historical exchange rate data and trends to predict future movements.

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    Forecasting Exchange Rates _2

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    Forecasting Exchange Rates _2

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    Forecasting exchange rates is important for international business planning as trade transactions are set in the future and accurate forecasts help evaluate risks and opportunities. There are two main approaches to exchange rate forecasting: the fundamental approach which analyzes economic factors like inflation rates and GDP, and the technical approach which uses historical exchange rate data and trends to predict future movements.

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    © All Rights Reserved
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    23 views1 page

    Forecasting Exchange Rates - 2

    Uploaded by

    Anonymous duzV27Mx3
    Forecasting exchange rates is important for international business planning as trade transactions are set in the future and accurate forecasts help evaluate risks and opportunities. There are two main approaches to exchange rate forecasting: the fundamental approach which analyzes economic factors like inflation rates and GDP, and the technical approach which uses historical exchange rate data and trends to predict future movements.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Forecasting Exchange Rates

    What is forecasting?
    A forecast represents an expectation about a future value or values of a variable.

    Why needed
    because most of the international trade related transactions are set in the future

    Why forecasting?
    Exchange rate forecasting is very important to evaluate the benefits and risks attached to
    the international business environment.

    There are two pure approaches to forecasting foreign exchange rates:


    (1) The fundamental approach
    (2) The technical approach

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