by Harsh Dalal
Project Outcome: Speculation is one of the most prominent causes influencing the currency exchange rate
Project Description: Harsh’s project aimed to determine which factors most significantly influence currency exchange rate fluctuations, with a focus on understanding how exchange rates would behave if a single factor had the most dominant impact on market forces. The analysis explored three major factors: inflation rates, interest rates, and speculation. After thorough investigation, speculation emerged as one of the most prominent causes influencing the currency exchange rate.
To accomplish his research goal, Harsh applied advanced mathematical techniques such as first-order differential equations, regression analysis, the Runge-Kutta method, stochastic differential equations, and the Euler-Maruyama method. These methods allowed him to model and analyze the relationship between the chosen factors and exchange rate changes. The innovative approach and rigorous research reflected exceptional personal engagement with the topic, showcasing Harsh’s dedication to using complex mathematical tools to investigate economic phenomena.