| Abstract: | Forecasting exchange rates accurately helps policy makers and businesses to plan more appropriately. Exchange rates provide information for policy makers about a country's mde position relative to that of ocher nations. In addition, accurate informaticm about future exchange rates helps to improve the quality of many management decisions. This study illustrates the use of different forecasting methods in predicting exchange rates f a the British Pound, German Mark and Japanese Yen. A number of accuracy measures are used to judge the performance of these methods. The results show that simple time series techniques can perfam as well as some complex and costly techniques in forecasting exchange rates. |
