Relative Strength Analysis of BRIC Currencies
25 Pages Posted: 18 May 2011
Date Written: May 17, 2011
BRIC or BRICs is an acronym that refers to the fast growing developing economies of Brazil, Russia, India, and China. The acronym was first coined and prominently used by the bank holding company Goldman Sachs in 2001. Goldman Sachs argued that, since they are developing rapidly, by 2050 the combined economies of the BRICs could eclipse the combined economies of the current richest countries of the world. Goldman Sachs argues that the economic potential of Brazil, Russia, India, and China is such that they may become among the four most dominant economies by the year 2050. In this research, we study the strength of the BRIC currencies. The analysis compares the currency movements of BRIC nations. The exchange rates have been collected from the central banks of the respective nations for the past one year beginning from March 2008 to February 2009. The data used for the research is the secondary data taken from the Reports about BRIC economies, Magazines and from the government sites of the countries. We used the statistical tools: mean, median mode, range and RSI to analyze the data.
Keywords: BRIC, Strength, Currency Movement, Mean, Median, Mode, Range, RSI
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