An analysis of the determinants of exchange rate and their impact on international trade

Preet Mundada , Dr. Jyoti Sah , Anirudh Kalyani

Changes in exchange rates have a big impact on international trade and the economy because they affect how competitive countries are and how much goods and services are imported and exported. There are numerous causes, including market speculation and macroeconomic factors. The goal of the study is to examine the main factors—GDP, inflation, and interest rates—and determine how they relate to changes in the exchange rate. It goes into additional detail about how these changes affect the prices, profit margins, and investment decisions of businesses engaged in cross-border commerce. Exchange rate volatility and its link to determinants and international commerce as a predictor of trade performance are examined in the research using statistical methods, correlation matrices, time series analysis, data visualisation, and tools like pandas, line graphs, and Python. In order to get useful results, we will be evaluating data for this project from 2010 to 2023. The findings of this study will be a helpful resource for academics investigating the broader economic effects of exchange rate volatility. The study also ends with suggestions for reducing currency volatility risk that will help to foster a steady and predictable trading environment.

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"An analysis of the determinants of exchange rate and their impact on international trade ", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.10, Issue 5, page no.a296-a302, May-2025, Available :https://ijsdr.org/papers/IJSDR2505036.pdf

Volume 10 Issue 5, May-2025

Pages : a296-a302

Paper Reg. ID: IJSDR_302429

Published Paper Id: IJSDR2505036

Downloads: 000487

Research Area: Other area not in list

Country: Panvel , Mumbai, Maharashtra , India

Published Paper PDF: https://ijsdr.org/papers/IJSDR2505036

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR2505036

DOI: https://doi.org/10.56975/ijsdr.v10i5.302429

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJSDR(IJ Publication) Janvi Wave

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