Menu
Currency fluctuation is basically a change in the exchange rate system. The value of one currency is usually measured with respect to another currency. Exchange rate is the rate at which a currency can be changed to another currency. It is also regarded as forex rate or foreign exchange rate There are various factors that affect the exchange rate of a currency. Currency fluctuation affects the economy of the country because if a domestic currency becomes stronger with respect to currency of other countries the foreign goods become cheaper. Exchange rate also influences a manufacturer, where to get the raw material from, a wholesaler where to buy and sell the product”. This paper attempts to demystify the impact and reason behind currency fluctuations and also try to find the impact on various economies round the globe.
• Aguilar, J and Nydalh, S. (2000), Central Bank Intervention and Exchange Rates: The Case of Sweden, Journal of International Financial Markets, Institutions and Money, 10(3-4), pp. 303-22
• Araki, N. (2001), Exchange Rate Policy of Russia: Lessons to learn from Russian experiences, Economic and Social Research Institute Barry Eichengreen & Daniel Gros (2020), Post-COVID- 19 Global Currency Order: Risks and Opportunities for the Euro, Study for the Committee on Economic and Monetary Affairs, Policy Department for Economic, Scientific and Quality of Life Policies, European Parliament, Luxembourg, 2020.
• Charles Riley & Sophia Yan (2015), China’s stock market crash, available at https://money.cnn. com/ 2015/07/09/investing/china-crash
• Glick, R. & Hutchison, M. (1999), Banking and Currency Crises: How Common are Twins? Available at Currency Crises (frbsf.org)
• Investopedia.com (2005), Asian Financial, [Online] Available at: http://www. investopeedia.com/ terms/a/asian-financial-crisis.asp
• J.Abbruzzese. (2015). The 7 most important things to know about the Chinese stock market crash. [ONLINE] Available at: http://mashable.com /2015/07 /27/ shanghai- china-stockmarket/#Zonz Z4KAkZqF
• Madura, Jeff ( 1989), International Financial Management, West Publishing Company.
• Moran Zhang (2013). Currency Wars 2013. [ONLINE] Available at: http://www.ibtimes.com/currency-wars- 2013-japans-weak-yen-strikes-big-blow-us-dollar- south-korean-won-euro-1109062.
• Neely & Christopher (2000), The Practice of Central Bank Intervention: Looking Under the Hood, Central Banking, 11(2), pp.24-37\
• Ozdemir, Y. ( 2007 ) , Politics of Price Stabilization: a Comparative Analysis of Argentina, Brazil, Israel, Mexico, and Turkey, Pittsburgh: University of Pittsburgh
• xpressmoney.com, (2019). The Impact Of Currency Fluctuations, Available at: https://www.xpressmoney. com/blog/industry/the-impact-of-currency-fluctuations Economy.
Desh Bhagat University,
Off to NH-44, Amloh Road, Mandi Gobindgarh,
District Fatehgarh Sahib, Punjab- 147301, India