Topic

An empirical study on
factors affecting foreign
exchange markets of
India
 Objectives
• To find out the impact of inflation rate changes
on Indian foreign exchange markets.
• To find out the impact of interest rate on
Indian foreign exchange markets.
• To find out the impact of balance of payment
on Indian foreign exchange markets.
 Need for the study
• To create a awareness of investors.
• Recognize numerous factors and discover the
factors.
• which hold maximum gravity in terms of
currency exchange rates.
 Scope
• The study is used to estimate exchange rates
in order to make a better decision in currency
markets both spot and futures market.
• This will help minimize losses on account of
exchange contracts and help in better
estimation of currency exchange rate.
• These prices predicted in study provide both
for hedging and speculation strategies
 Limitations
.
• The problem is lots of data available in the
websites that make confusion.
• If data connection available only rural area
researcher do his research well otherwise its
difficult one.
• The study is based on historical data.
 Research methodology

• The research will have 2 aspects to it

qualitative and quantitative
• The qualitative factors and factors such as
interest rates, Balance of payment, inflation.
• The quantitative factors which will be
observed yearly currencies rate.
 Research design
To compare the data between Foreign
exchange rates, Interest rate ,Inflation,
balance of payments.
To analysis this all data with help of MS EXCEL
and SPSS find the value of this factors.
DATA COLLECTION TOOLS

The collected data from Reserve bank of India

Database.
 Statistical tools

• Regression,
• Correlation analysis is go to use in this study.
THANK YOU