COINTEGRATING RELATION BETWEEN EXCHANGE RATE AND GOLD PRICE
Journal Title: International journal of research -GRANTHAALAYAH - Year 2017, Vol 5, Issue 10
Abstract
The very purpose of this paper is to analyse the relationship between gold price and Rupee – Dollar exchange rate in India. The study utilises the annual data of exchange Rate (ER) and Gold Price (GP) from 1970 to 2015 to determine the relationship. Different econometric tools like Unit root test, Johansen co integration test, Vector error correction model, Granger causality test are used for detecting the long run relation, if any between the mentioned variables. The result shows that there exists a long run cointegrating relation between the variables. That is we can stabilise the Gold Price movement by controlling the exchange rate fluctuations. Likewise it also shows that Exchange rate doesn’t Granger cause to Gold price and vice versa. It means that the time series data of one vasriable cannot be used to predict another.
Authors and Affiliations
Keywords
Related Articles
- EP ID EP232619
- DOI 10.5281/zenodo.1043230
- Views 125
- Downloads 0
THE RISK ASSESMENT AND IMPACT OF HYGIENIC CONDITIONS ON THE DEVELOPMENT OF LEGIONELLA SPP. IN WATER SYSTEMS OF PUBLIC AND TOURIST FACILITIES
A large number of different diseases are associated with the consumption of hygienic defective water and the use of water for maintaining personal hygiene. Recreational waters, water in systems intended for cooling and h...
USING COOPERATIVE LEARNING ACTIVITIES TO ENHANCE FIFTH GRADE STUDENTS’ READING COMPREHENSION SKILL
The purpose of this study was to investigate students’ opinions towards the reading comprehension through cooperative learning activities. The subjects were 25 students in grade 5 at Bannonnoi school, Ubon Ratchathani, T...
A LUCID PORTRAYAL OF CONSUMMATE LIFE IN ASHALI VARMA’S -THE VICTORIA CROSS
Army is one of the noblest professions. Army men usually strive for the welfare of our nation. They should be adulated for their unique sacrifice. “The Victoria Cross” throws light on the life of a unique army officer. I...
AYURVEDIC MANAGEMENT OF EK-KUSHTA (PSORIASIS)-A CASE STUDY
Psoriasis is described in Ayurveda as ek-kushta, it is type of kshudrakushta. The number of people suffering from Psoriasis all over the world is increasing progressively. Ayurvedic medicine is oriented toward prevention...
GROUNDWATER QUALITY ASSESSMENT FOR IRRIGATION PURPOSES AT THE WESTERN PORTION OF THE RIVER NILE– MINIA DISTRICT- EGYPT
The main goal of this research is assessment the groundwater resources for irrigation purposes at the western portion of the River Nile –Minia district- Egypt. The research depend on representation and calculation the re...