From the general consideration we can see that in the last one year the most volatile currency against dollar was Indian rupee and less frequent movement was seen in the Japanese yen; reason might be the strong monetary policy, less interest rate movement and very little inflation for less movement and vise versa for the Indian rupee. Analysis: china India Malaysia China 0. 386097 0. 515962 . 781826 Fig: co-relation of the currency movement To see the Asian currency movement with the Dollar the co-relation measurement is used by calculating the changes over currency movements from the last 1 year. Calculation is showed in the appendix ). From the co-relation we can conclude that all the three Asian currencies are move in the same direction along with the dollar Indian currency move very positively and more aggressively with the dollar than the other currencies. All the three currencies are having positive co-relating along each there and the currencies are all quoted in direct exchange rate positive movements of the currencies showing they are move in the same direction with dollar changes.
Movement of Latin American countries: For the analysis of currencies movement of Latin America with the US dollar we took the Brazilian real, Venezuelan Bolivar and Mexican currency Ringlets. Because in the Asia these currency are more dominating across the globe. From the general consideration we can see that in the last one year the most volatile currency against dollar was Mexican peso and less frequent movement was seen in the Bolivar. The Bolivar is strictly controlled by the government of Venezuela thus the rate is not a floating one.
Analysis of movement: Brazil Venezuela Mexico. In the part of Latin America the Bolivar do not move in the same direction with the there currency thus having a negative co-relation with both peso and real. But the other two currency have positive co-relation which signifies that these are moving in the same direction with the movement of dollars. But the movement response is seen more aggressive in the changes of Mexican peso with the other two by having the shiest positive co-relation.
Volatility Comparison of ADD vs. BIT Source: and The volatility of a currency is measured by calculating standard deviation of the currency changes among different months. From the calculated standard deviation the ADD having the value of 2. 54% and BIT having standard deviation of . 96%. By the result we conclude that ADD having more variation than BIT. This signifies that the changes over the ADD direct exchange rate is more frequently move in the last 12 months than BIT. So the ADD is more volatile than BIT.
