Paper Title :A Study on Currencies – Gold - Crude and Trade Balance

Author :Munira Habibullah

Article Citation :Munira Habibullah , (2017 ) " A Study on Currencies – Gold - Crude and Trade Balance " , International Journal of Management and Applied Science (IJMAS) , pp. 50-56, Volume-3,Issue-7

Abstract : Introduction: The purpose of the foreign exchange market ‘FOREX’ is to assist international trade and investment. The foreign exchange market allows business to convert one currency to another foreign currency. In terms of volume of trading, it is the largest market in the world. The foreign exchange market facilitates international trade and capital movement, the credit function performed by foreign exchange markets also plays a very important role in the growth of foreign trade, for international trade depends to a great extent on credit facilities. While Gold as a commodity, is considered to be a hedge against inflation, recession, and other times of uncertainties. Gold and the US dollar still hold a pull over each other even today. The association developed from the use of gold and silver standards to set the values of currencies in the past. The US dollar plays a major role in the price movements of crude oil also. As commodities trade globally, often using the US dollar as a medium, price movements in the US dollar have important consequences. A weak US dollar is considered positive for crude oil producers and a strengthening US dollar is often viewed as negative for the crude producers. Research Methodology: The paper attempts to find the relationship between US Dollar, Crude Oil and Gold. The present study follows a descriptive research design. The source of data is secondary for the study. The analysis of the data is done using inferential statistics. Major Findings: The analysis reveals that there is significant impact of US dollar currency on gold price. It can be concluded that the crisis had effect on the crude oil price. Managerial Implications: The outcome of the study could be considered by investors, government as inputs in making investment decisions.

Type : Research paper

Published : Volume-3,Issue-7

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