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Forecasting Exchange-Rates via Local Approximation Methods and Neural Networks

Author

Listed:
  • Andreou, Andreas S.
  • Zombanakis, George A.
  • Georgopoulos, E. F.
  • Likothanassis, S. D.

Abstract

There has been an increased number of papers in the literature in recent years, applying several methods and techniques for exchange - rate prediction. This paper focuses on the Greek drachma using daily observations of the drachma rates against four major currencies, namely the U.S. Dollar (USD), the Deutsche Mark (DM), the French Franc (FF) and the British Pound (GBP) for a period of 11 years, aiming at forecasting their short-term course by applying local approximation methods based on both chaotic analysis and neural networks.

Suggested Citation

  • Andreou, Andreas S. & Zombanakis, George A. & Georgopoulos, E. F. & Likothanassis, S. D., 1998. "Forecasting Exchange-Rates via Local Approximation Methods and Neural Networks," MPRA Paper 17764, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17764
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    References listed on IDEAS

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    Keywords

    Key Words: Exchange Rates; Forecasting; Neural Networks;
    All these keywords.

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics

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