An analysis on Indian Forex for examining investment and trade option

Studies related to FOREX and its intervention on investments decision is mostly myopic, though there are numerous techniques to forecast none of them shown to be superior to any other. Hereby analysis where made to investigate investment and trade option available with respect to India using FOREX of major countries currencies as the base factor and GDP & PPP as an associated variables. The GDP postulate the performance of the total economy, while PPP put forward the purchasing power of the collective individuals within the country. Henceforth by considering the GDP and PPP variables of one country against another it is possible to estimate the concert of one country against other. The forecasted currencies are correlated with GDP and PPP of respective countries indicated positive relationship. The closer investigation on investment decision indicated that better performing countries in terms of GDP and PPP are showing better performance in currencies values with respect to Indian money.