The Relationship between Gold Prices and Exchange Value of US Dollar in India


  • Girish Karunakaran Nair Stenden University
  • Nidhi Choudhary Banasthali University
  • Harsh Purohit Banasthali University



Gold Price, Value of Dollar, Johansen Co-Integration, Ganger Causality.


The inverse relationship between the value of U.S. dollar and that of gold is one of the most talked about relationships in currency markets. The present study is an attempt to understand the impact of recession of 2008 on relationship between exchange rate of US dollar in INR and gold prices in India. The study uses Johansen Co- Integration test to check the long term association between exchange rate of US dollar in INR and gold prices in India and it further uses the Granger Causality Test to check the lead lag relationship between the variables. A separate pre, during and post recession analysis of the variables is done to understand the impact of recession on this relationship. The study highlights how this relationship has changed since the global turmoil.

Author Biographies

Girish Karunakaran Nair, Stenden University

Program Leader International Hospitality Management

Stenden University


Nidhi Choudhary, Banasthali University

Research Scholar, FMS- WISDOM

Banasthali University, India

Harsh Purohit, Banasthali University

Chair- ICICI Bank Chair for BFSI

Dean, WISDOM, Faculty of Management Studies

Banasthali University


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