Predicting Currency Moves (A Techno retrospective analysis)

The variation in the value of currency of any country with respect to foreign currencies like US $ is called Currency Fluctuation/Move. This study grasps the perception in regards to the Spot rates and forward rates relationship in different time dimensions and further the productivity with the Foreign exchange markets of Pakistan. The daily based information has been retrieved from State Bank of Pakistan, Business recorder, Yahoo finance and World Bank websites for the period 2001 to 2018 and additionally forward rates are utilized for various time measurements. During the research work the prominent models pertaining to the Price estimation like Balcksholes Merton model , Random Walk model and Efficient market hypothesis have been taken into the consideration The outcome presumes that spot rate Cannot completely mirror all expected data to foresee the future market patterns thus promote the deviation can be limited utilizing the specialized pointers which has been talked about ahead in detail. The Uncertainty and specialized pointers nexus is additionally a piece of an understanding here which is frequently utilized in the foreign exchange markets in Pakistan