This research aims to contribute valuable insights to the discourse on Exchange Rate Volatility, with the overarching objective of enhancing the resilience and prosperity of economies through the development of robust strategies and risk management tools. The empirical study conducted in this paper focuses on evaluating the extent of fluctuations in exchange rates over 5 years, specifically in the context of the reserve currency, the United States Dollar (USD), in comparison with the Indian Rupee (INR). Utilizing historical data spanning the preceding 5 years, we employ Historical Volatility analysis to examine the dynamics of USD exchange rates concerning INR. This analysis not only facilitates a comprehensive understanding of exchange rate volatility but also serves as a valuable resource for international businesses in formulating strategic policies. The outcomes of this study are anticipated to provide nuanced insights that can contribute to informed decision-making in global commerce.
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Mahajan et al. (2024) studied this question.
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