In this paper, we have compared forecasting performance of three economic and two autoregressive models of exchange rate in five Asian economies; namely Pakistan, India, Indonesia, Korea and Sri Lanka. Models include purchasing power parity (PPP), interest rate parity (IRP), adhoc model, random...

This paper applies a sentiment index to check the influence of regional developed countries like Japan and Germany on the sentiments in regional developing countries like Pakistan and Turkey, respectively. The index has been created using a principal component approach with modified proxies. The...