Analysis of exchange rates for 5 currencies: USD, AUD,BAHT, RINGGIT, EURO

Essay by Rashad871University, Bachelor'sA+, December 2004

download word file, 7 pages 0.0

Downloaded 68 times

Q1. Provide and interpret the descriptive statistics

(For calculation part for nom appr/depr, please refer to table 1)


Based on the calculation of the average exchange rate of Euro against Malaysian Ringgit for the period of 2001-2004 (June) we found it to be 3.8936. As far as max/min analysis are concerned, the max value or the appreciation of Euro with respect to MYR during this period was 4.8851MYR/EURO, whereas the lowest value or depreciation was 3.1781. The average amount of exchange rate data deviated from the mean (3.8936) was 0.4996(S.D). It indicates on the fact that the exchange rate of MYR/EURO has been less volatile over the period of 2001-2004(June).


According to our calculations, the average MYR/100BAHT exchange rates over the period 2001 to 2004 were 8.9497. Moreover, the peak value that Thai Baht reached over this period was 9.7862 and the lowest point recorded was 8.3015.

The level of deviation of Thai Baht values from the mean over the period was 0.4007; this tells us that the exchange rate of Thai Baht with respect to MYR have been relatively steady.


The analysis of Australian dollar nominal value shows that its value against Malaysian Ringgit has been quite stable and constant over the period. Standard deviation of 0.3235 reflects and proves this fact. In fact if we compare the standard deviation compared to Thai Baht and Euro we will notice that Australian dollar value was less volatile and unstable.

The highest value of appreciation of AUD was recorded at the rate of 3.0315 MYR/ AUD, whereas the lowest at the rate of 1.8348.


US dollar nominal value against Malaysian ringgit has been unchanged since Malaysian ringgit is pegged to USD at the fixed rate of 3.8 RM/USD. Thus standard deviation is 0, which...