Foreign Exchange Volatility (with respect to INR with US $, Canadian $, Japanese Yen & Pound Sterling) & the Movement of DJIA( Dow Jones Industrial Average)

Guided By:Dr. Sumeet Gupta Presented by:-

Piyush KumarMBA-IBMR740210030

Introduction

•The Dow Jones Industrial Average

•Foreign-exchange

INR to GBP

latest (Dec 12)- 82.6026 lowest (Jul 8)- 70.787 highest (Dec 12)- 82.6026

INR to US $

latest (Dec 12)- 52.8617 lowest (Aug 1)- 44.0749 highest (Dec 12)- 52.8617

INR to Japanese Yen

latest (Dec 12)- 0.679277 lowest (Jul 8)- 0.545154 highest (Nov 22)- 0.680652

INR to Canadian $

latest (Dec 12)- 51.596 lowest (Aug 11)- 45.5326 highest (Dec 12)- 51.596

Objective:

The objective of this research is to study the significance & concept of :-

•Foreign Exchange volatility (With respect to INR with US $, Canadian $, Japanese Yen & Pound Sterling)

•The Movement of DJIA( Dow Jones Industrial Average)

Scope Of Research:

•The Dow Jones Industrial Average (DJIA) is the most quoted stock market index in the world. The changes in the index are often perceived to be representative of the entire stock market.

•Foreign exchange constitutes the major part of any economy in the world. Concerns about foreign exchange market volatility have led a number of economists, policy makers and others to advocate countervailing measures

Review of Literature• The scope of this review is limited by the availability

of literature and time. As a broad study, it does not present the full range of literature on the Movement of DJIA, but attempts to give an overview of the main concerns and areas for improvement.

• Siegel, Jeremy J. (1998). “Stocks for the Long Run,” New York: McGraw-Hill

• Journal of Financial Services Research, Vol. 3, No. 2-3.

• “Price volatility, international market links, and their implications for regulatory policies”, Journal of Financial Services Research

RESEARCH METHODOLOGY:

Theoretical Framework:It includes economic theories like:-•PPP- Purchasing Power Parity.•IRP- Interest rate ParityTechnical AnalysisIt Includes:-•Correlation•Regression•Beta Calculation

Sources of Data

Secondary data would be used to study:•The Movements of DJIA by looking the

Indices.•To study the stock exchanges of some

major economies•To study volatility of the currencies

Secondary data can be collected from journals, research papers, internet, finance & economics magazines,etc

Statistical tools:

•Histograms•Graphs•Pie-charts•Trend analysis•Schematic flow diagram

References

•“An idea that gained currency but lost clarity”, Financial Times, 11 September.

•“Transaction taxes and the behaviour of the Swedish stock market”, Journal of Financial Economics, Vol. 33, No. 2. UMLAUF

•“A proposal for international monetary reform”, Eastern Economic Journal, Vol. 4, No. 3-4

THANK YOU