Identifying Interdependence between Returns on Currency Rate (INR/$) and NIFTY50 for Predicting Currency Rate (INR/$) Returns

In present study, researcher tries to identify whether there is simultaneous impact of FII on currency rate and equity market do exist or not. Analysis was performed by using 1125 observation of daily returns for NIFTY50, FII and Currency rate taken from Capital Line and confirmed through NSE for developing model. In present study, proposed model found to be significant predictable for both currency rate and NIFTY50. Result can be used to control currency fluctuation, which is major issue of concern for Indian economy. Result will be helpful in deciding buy/sell strategies to traders of equity market and currency market for earn abnormal returns.