Exchange Rate Forecasting: Techniques and Applications

Forecasting exchange rates is a variable that preoccupies economists, businesses and governments, being more critical to more people than any other variable. Here, the author sets out to provide a concise survey of the techniques of forecasting, bringing together the various forecasting methods and applying them to the exchange rate. Practical in approach, the guide provides an understanding of the techniques of forecasting with an emphasis on its applications and use in business decision making, such as hedging, speculation, investment, financing and capital budgeting. In addition, the author also considers developments in the field, notably neural networks and chaos, with explanations of these "rocket science" areas. The practical approach to forecasting is also reflected in the number of examples that pepper the text, whilst descriptions of some of the software packages that are used in practice to generate forecasts are also provided.