Abstract: This paper gives an idea to explore various factors affecting valuation of currency after increasing interest rates by Federal Reserve, USA after almost a decade post economic recession.
These economic reforms are seen as essential master steps to strengthen its economy and increase valuation of currency and enhanced global investment.
This paper makes an attempt to explore mathematical theorem to reflect how many factors such as interest rates, inflation rates and political stability play significant role to enhance appreciation of its domestic currency in respect of other currencies in the world. Concept of exchange rate behavior has been explained through the formula.
To understand role and significance of various factors illustrations have been given in this paper as size of economy of any nation is measured by valuation of currency and investment pattern of foreign countries.
Keywords: Interest Rate, Inflation Rate, Valuation, Investment, Exchange Rate, Demand, GDP, Bank Rate, Repo Rate Etc.
Title: Valuation of Currency and Its Impact on Investment: A Study in the Context of Many Confounding Factors
Author: Dr. Syed Mohammad Faisal, Dr Omar Al- Aboud, Mr. Ahmed Majarashi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
