UNIVERSITY OF MUMBAI

PROJECT ON

FOREIGN EXCHANGE MARKET

MASTER OF COMMERCE BANKING &FINANCE SEMESTER I I (2012-13)

SUBMITTED BY: LUV SAMANI ROLL NO.49

PROJECT GUIDE: PROF. SHIV SHANKAR PANIGRAHI

S.K.SOMAIYA COLLEGE OF ARTS, SCIENCE& COMMERCE, VIDYAVIHAR (EAST), MUMBAI 400077, (MUMBAI UNIVERSITY)

S.K.SOMAIYA COLLEGE OF ARTS, SCIENCE& COMMERCE, VIDYAVIHAR (EAST), MUMBAI 400077

(MUMBAI UNIVERSITY)

PROJECT ON: FOREIGN EXCHANGE MARKET

MASTER OF COMMERCE BANKING AND FINANCE

SEMESTER I I (2012-2013) Submitted In Partial Fulfillment of the requirements For the Award of the Degree of Master of Commerce Banking & Finance By LUV SAMANI S.K.SOMAIYA COLLEGE OF ARTS, SCIENCE& COMMERCE, VIDYAVIHAR (EAST), MUMBAI 400077, (MUMBAI UNIVERSITY)

CERTIFICATE
This is to certify that Mr. LUV SAMANI of M.Com. Banking & Finance Semester I I (Academic Year) 2012-2013 has successfullyCompleted Project on FOREIGN EXCHANGE MARKET under the guidance of PROF.SHIV SHANKAR PANIGRAHI.

__________________
(Mrs. SANGEETA KOHLI)

Principal

_________________ Internal Examiner

__________________ External Examiner

_________________
(Mr. SHIV SHANKAR PANIGRAHI)

Project Guide

DECLARATION
I, Mr. LUV SAMANI the student of M.Com-Banking &Finance Semester I I (2012-2013) hereby declare that I have completed Project on FOREIGN EXCHANGE MARKET.Wherever the data/information has been taken from any book or other sources have been mentioned in bibliography.The information submitted is true and original to the best of my knowledge.

Students Signature

_______________ LUV SAMANI (Roll No. 49)

ACKNOWLEDGEMENT
On the event of completion of my project FOREIGN EXCHANGE MARKET, I take the opportunity to express my deep sense of gratitude towards all those people without whose guidance, inspiration, & timely help this project would have never seen the light of day. Heartily thanks to Mumbai University for giving me the opportunity to work on this project. I would also like to thank our principal Mrs. SANGEETA KOHLI for giving us this brilliant opportunity to work on this project. Any accomplishment requires the effort of many people and this project is not different. I find great pleasure in expressing my deepest sense of gratitude towards my project guide PROF.SHIV SHANKAR PANIGRAHI, whose guidance & inspiration right from the conceptualization to the finishing stages proved to be very essential & valuable in the completion of the completion of the project. I would like to thank Library staff, all my classmates, and friends for their invaluable suggestions & guidance for my project work. Lastly I would like to thank My Parents without whose consent & support it would have not been possible for me to complete this project.

Students Signature _______________ LUV SAMANI (Roll No. 49)

INDEX
SR.NO 1 2 2.1 2.2 3 4 5 6 7 8 9 10 PARTICULARS The foreign exchange market : An introduction Characteristics of foreign exchange market Why do we make use of the foreign exchange market? Who are the foreign exchange market participants? Foreign exchange instruments Factors influencing exchange rates Determination of exchange rates Foreign exchange forecasting in practice Official actions to influence exchange rates Flexible v/s fixed exchange rates Conclusion Bibliography PG.NO. 1 5 6 6 8 8 17 29 35 40 44 45