An Empirical Analysis on the Exchange Rate Changes' Relationships between Hong Kong Dollar and Four Major Currencies

DOI

10.2991/iceemr-18.2018.76How to use a DOI?

Keywords

Hong Kong dollar (HKD), exchange rate change, principal component analysis, multiple regression, wavelet analysis, American dollar (USD)

Abstract

In order to deeply understand the important influence factors of the exchange rate changes of Hong Kong dollar, the methods of correlation analysis, principal component analysis, multiple regression and wavelet analysis are used to analyze the topic of this paper, based on the exchange rate data for five currencies from 2015 to 2017. Some original results are revealed in this study: the general change of four major currencies (USD, JPY, EUR and GBP) was a consequence of the interaction among these currencies; the exchange rates of HKD always changed with the general change of the four currencies; the time series of day-by-day exchange rates for both of the USD and HKD presented a noteworthy periodical change with a time duration about 460-550 days; and the change of HKD exchange rates kept in step with one of USD exchange rate timely; the time span of the noteworthy variation period showed a change trend of gradual augment with a small extent; in the meantime, JPY and EUR also affected the exchange rate changes of HKD to a certain extent. The response relationships of HKD to four currencies were tied closely to the current linked exchange rate system in Hong Kong.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yufeng Huang
AU  - Chi Kit Ng
PY  - 2018/06
DA  - 2018/06
TI  - An Empirical Analysis on the Exchange Rate Changes' Relationships between Hong Kong Dollar and Four Major Currencies
BT  - Proceedings of the 2018 2nd International Conference on Education, Economics and Management Research (ICEEMR 2018)
PB  - Atlantis Press
SP  - 333
EP  - 339
SN  - 2352-5398
UR  - https://doi.org/10.2991/iceemr-18.2018.76
DO  - 10.2991/iceemr-18.2018.76
ID  - Huang2018/06
ER  -