A study on foreign exchange market volatility inbrics countries Dr. Sathya J.*, Roseline A. Leema** *Assistant Professor, Department of Economics, Sri Saradha College for Women, Salem, Coimbatore, India. Email id: sathya_ecot@yahoo.com **Ph. D. Research Scholar, Department of Commerce and Financial Studies, Bharathidasan University, Trichy, India Online published on 9 February, 2018. Abstract The price of a nation's currency in terms of another currency is referred to as exchange rate. The foreign exchange market is the market where the currencies are bought and sold. This paper investigated the long-term relationship between the BRICS countries foreign exchange markets namely, Brazil, Russia, India, China, and South Africa. The study used annual data from 2012 to 2016. Descriptive statistics, Correlation, ARCH were used for analyzing the objectives. This study aims to analyse the volatility in the BRICS countries Foreign Exchange Market. A higher volatility means that an exchange rate can potentially be spread out over a larger range of values. High volatility means that the price of the currency can change dramatically over a short time period in either direction. Model results indicate that Brazilian agricultural and total exports have been significantly and negatively impacted by own and third country currency volatility, while Chinese and Honduran exports have been positively or not significantly affected. The volatility is measured by the range to which the price of the security may increase or decrease in the Foreign Exchange market. The Exchange Rate rates have a positive effect on the BRICS exchange rate the result of revel volatility have a positive relationship in the BRICS countries, hence it shows the significant level is positive and its accepted. Top Keywords Foreign Exchange Market, BRICS countries, Volatility. Top |