An Empirical Study on Impact of Gold Price Fluctuations on Exchange rate

Abstract

The exchange rate is one of the most determinants of a country's relative level of economic health. It plays a vital role in trade, which is critical to most free market economies. From past many years dynamic exchange rate fluctuations seen in market. These fluctuations attributed by many factors like gold prices, inflation, speculation, bi lls of payments, e.t.c. Thus there is a need for identifying the relationship between exchange rate and its variables. One such variable which is chosen for study is Gold price.