Indian Journal of Industrial Relations

2020 | Volume 56 | Issue Issue 2

Predicting Indian Foreign Exchange Market Crashes through Log-Periodic Power Law

1. Varun Sarda – Assistant Professor, Prestige Institute Of Management And Research, Indore, Madhya Pradesh

2. Yamini Karmarkar And Neha Lakhotia – Assistant Professor, Prestige Institute Of Management And Research, Indore, Madhya Pradesh

Received
07-Dec-2020 		Accepted
- 		Published
07-Dec-2020
Abstract
A sudden crash in the foreign exchange market can wipe out a lot of value for the investors in the market. The present study analyzes crashes in the Indian foreign exchange market using Log-Periodic Power Law during1997- 2011.The fall in prices in Indian foreign exchange market is less than required due to the fact that, though there is full current account convertibility, there still are restrictions on capital account convertibility. Further, the Central Bank intervenes in the foreign exchange market to influence the exchange rate of Rupee. Log-Periodic Power Law will be more applicable in a situation where there will be no restrictions and controls on exchange rate determination.
Keywords N.A.
Locked
Subscribed
Open Access
Open Access
Articles Journal Info Editorial Board Guidelines Pricing Info Peer Review & Publication Policy Submit Manuscript