Indian Journal of Finance
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- IJF-May11-Article1-Impact of Dollar Fluctuation On Gold And Crude Oil Prices
- Price : 80.00
- Published on May 2, 2011
- Associated Management Consultants (P) Ltd.
- Issues 356
- Language - English
- Published daily
About this issue
The Rs./$ rate is very important for the movement of prices of Gold and Crude oil. The Rs./$ rate is considered as a base by the commodity traders to forecast the Gold or Crude oil movement. This gives a strong subjective background to test the existence of any such relationship in India. This paper focuses on to establish and validate the long term relationship of commodities’ prices (Gold & Crude Oil) with Exchange rate (Rs./Dollar.) in the Indian context. There are numerous traders in India who trade in commodities on the basis of relationship of Rs./$ exchange rate and Commodity price. There are many other factors on which the prices of Gold and crude oil may depend. They are government policies; budget, inflation, economic and political condition of the country etc. affect the prices of Gold and Crude oil. But this study focuses only on one independent variable i.e. Rs./$ exchange rate. The data of Rs./$ weekly closing rate taken as an independent variable and the prices of Gold and Crude oil are taken as dependent variables. The correlation-regression analysis and ADF test is used to find out relationship among Rs./$ exchange rate volatility v/s Gold & Crude oil. The Rs./$ exchange rate found stationary with the help of ADF test. The study shows the negative relationship between Rs./$ exchange rate and Gold and Crude oil.
About Indian Journal of Finance
Indian Journal of Finance, a source of sophisticated analysis of developments in the rapidly expanding world of finance, is a monthly journal with topics ranging from corporate to personal finance, insurance to financial economics and derivatives.