Exchange Rates Nexus A Technical Approach towards Efficiency
Author(s)
Imran Ali Khan , Muhammad Naseem , Mubashir Ahmad , Azhar Khan ,
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Abstract
The study incorporates the comprehension regarding the Spot rates and forward rates relationship in various time dimensions and furthers the efficiency with the foreign exchange markets of Pakistan. The daily based data has been from State Bank of Pakistan,Business recorder, Yahoo finance, and World Bank websites for the period 2001 to 2015 and further forward rates are used for different time dimensions. The result concludes that spot rate Cannot fully reflect all required information to predict the future market trends and so further the deviation can be minimized using the technical indicators which „s been discussed ahead in detail. The Uncertainty and technical indicators nexus is also a part of a comprehension here which is most often used in the foreign exchange markets in Pakistan.
Keywords
Foreign Exchange Markets, Efficient market hypothesis, Spot rate, and Forward rates.
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