Foreign Exchange Volatility (with respect to INR with US $, Canadian $, Japanese Yen & Pound Sterling) & the

Movement of DJIA( Dow Jones Industrial Average)

Guided By: Dr. Sumeet Gupta

Presented by:Piyush Kumar MBA-IBM R740210030

Introduction
The Dow Jones Industrial Average

Foreign-exchange

INR to GBP

latest (Dec 12)- 82.6026 lowest (Jul 8)- 70.787 highest (Dec 12)- 82.6026

INR to US $

latest (Dec 12)- 52.8617 lowest (Aug 1)- 44.0749 highest (Dec 12)- 52.8617

INR to Japanese Yen

latest (Dec 12)- 0.679277 lowest (Jul 8)- 0.545154 highest (Nov 22)- 0.680652

INR to Canadian $

latest (Dec 12)- 51.596 lowest (Aug 11)- 45.5326 highest (Dec 12)- 51.596

Objective:
The objective of this research is to study the significance & concept of : Foreign Exchange volatility (With respect to INR with US $, Canadian $, Japanese Yen & Pound Sterling) The Movement of DJIA( Dow Jones Industrial Average)

Scope Of Research:
The Dow Jones Industrial Average (DJIA) is the most quoted stock market index in the world. The changes in the index are often perceived to be representative of the entire stock market. Foreign exchange constitutes the major part of any economy in the world. Concerns about foreign exchange market volatility have led a number of economists, policy makers and others to advocate countervailing measures

Review of Literature
The scope of this review is limited by the availability of literature and time. As a broad study, it does not present the full range of literature on the Movement of DJIA, but attempts to give an overview of the main concerns and areas for improvement. Siegel, Jeremy J. (1998). Stocks for the Long Run, New York: McGraw-Hill Journal of Financial Services Research, Vol. 3, No. 2-3. Price volatility, international market links, and their implications for regulatory policies, Journal of Financial Services Research

RESEARCH METHODOLOGY:
Theoretical Framework: It includes economic theories like: PPP- Purchasing Power Parity. IRP- Interest rate Parity Technical Analysis It Includes: Correlation Regression Beta Calculation

Sources of Data
Secondary data would be used to study: The Movements of DJIA by looking the Indices. To study the stock exchanges of some major economies To study volatility of the currencies Secondary data can be collected from journals, research papers, internet, finance & economics magazines,etc

Statistical tools:
Histograms Graphs Pie-charts Trend analysis Schematic flow diagram

References
An idea that gained currency but lost clarity, Financial Times, 11 September. Transaction taxes and the behaviour of the Swedish stock market, Journal of Financial Economics, Vol. 33, No. 2. UMLAUF A proposal for international monetary reform, Eastern Economic Journal, Vol. 4, No. 3-4