A SYNOPSISOf the PROJECT

A STUDY ON THE IMPACT OF CURRENCY VOLATILITY ON THE ECONOMY

Submitted to

BANGALORE UNIVERSITY

For the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

MS.Nitika dubey

(10VWCMA034)

UNDER THE GUIDANCE OF

Mrs.Pratibha Raj

Alliance Business Academy

BTM layout, 2nd Stage, Bangalore

Academic Year- 2010-2012

1. Introduction:- An increase in the value of one currency with respect to another. This means that one unit

of the appreciating currency buys more units of the other currency than it did previously.

While this can be a good sign, as it may indicate a low rate of inflation, it also

makes exports from the country with the appreciating currency more expensive, while

making imports less expensive.

Currency depreciation is the loss of value of a country's currency with respect to one or

more foreign reference currencies.

2. Statement of the problem

A STUDY ON THE IMPACT OF CURRENCY VOLATILITY ON ECONOMY AND MEASURE REASONS FOR CURRENCY VOLATILITY.

3. Objective of the study:-

To know the impact it on exports and imports.

To know the impact of it on the repatriated profit.

Estimate the relationships between price and exchange rate volatility and analyse their

effects on exports and imports prices.

Evaluate the nature and extent of the impact of price and exchange rate volatility on

economy.

4. Significance of the Study:-

Currency appreciation or depreciation can impact the economy in various ways.

It can effect the prices of imported goods.

Impact of Foreign exchange rate on the tourism.

It can also impact the buying and investment decisions.

Scope of the Study:-

This study will be helpful to the exporter and the exporter. This study will be helpful in currency trading. This study will help in finding out the relation between currency depreciation and

inflation. This study will be helpful in hedging against exchange rate fluctuation.

DATA PROCESSING

Collected data was Analyzed and tabulated with the help of MS Excel and then they have been presented in the tables and Graphs in this report.

5. Limitations of the Study:-

There is no primary data . Time consuming. Lack of availability of reliable data.

6. Research Methodology:-

Research is an organized and systematic way of finding answers to questions.

Primary data:-

PRIMARY DATA is data that has not been previously published, The data is derived

from a new or original research study and collected at the source, e.g., in marketing, it

is information that is obtained directly from first-hand sources by means of surveys,

observation or experimentation. There is no primary data.

Secondary data :-

Secondary data is data collected by someone other than the user. Common sources of

secondary data for social science include censuses, surveys, organizational records and

data collected through qualitative methodologies. exchange rates, bop, budgets etc.

Organization of the Study

The research comprises of the following chapters:

Chapter 1: Introduction.

Chapter 2: Research Design.

Chapter 3: Profile of the Industry.

Chapter 4: Analysis and Interpretation.

Chapter 5: Finding’s and Suggestions.

Chapter 6: Conclusion.