Seybold Report ISSN: 1533-9211
V.P.Sriraman
Associate Professor, Bharathidasan Institute of Management
Sunilkumar C T
Research Scholar, Bharatidasan University,
Mahesh R. Pillai
Associate Professor: Skyline University College, Sharjah. UAE.
Vol 17, No 08 ( 2022 ) | DOI: 10.5281/zenodo.7012727 | Licensing: CC 4.0 | Pg no: 537-551 | Published on: 20-08-2022
Abstract
The Economic Trends has been on a tremendous change across the globe. The COVID pandemic has even devastated the income economy, particularly of the mid-segment people. This has worsened the economic situations and affected the financial market globally. In this paper we discuss the factors for the increased relationship related to the exchange rate fluctuations and its reflection in the economic growth in the emerging market economies. The study tries to understand the factors for fluctuations in the currency market and its relations to the money market development. The data needed for the study were collected from most of the published studies in the area of currency exchange rate fluctuations. There are many indications in this regard related to the increased exchange rate fluctuations associated with multiple factors namely currency mismatches, market imperfections, de-regularities and other constituent factors, that were addressed during the study. There were diversified studies happened in this area of currency rate fluctuations. The rate of exchange is a volatile situation with too many factors affecting the currency market. Hence one particular factor cannot be termed as a factor for fluctuations of changes, multiple factors including the geo-political factors, futility in the political structure, changes in the economy of related products and production etc. were affecting the money market values. Hence various studies that happened constituted the part of this study. Methods adopted for the study is basically the evaluation of the rate of change in the money market, across the nations mostly collected from previous researches. The study concludes explaining the basic relationship to the flexibility in the currency exchange rate and the developments happening in the financial markets is less evident. Diversified factors influence the financial market developments. The credibility addressed for any chosen money market regime has got a non-trivial role. In addition, the relation of the currency rate fluctuations as well as the financial market situation is a subject of reverse causality. Basically, the study reflects the choices with regard to the exchange rate flexibility and its real reflections on the economic consequences.
Keywords:
Currency Rate Fluctuations, Market Shift, Economic growth, Financial Market volatility.