The foreign exchange (FX) market is the largest financial market and has a daily turnover close to five trillion US dollars. The evolution of the foreign exchange market since the abrogation of the Bretton Woods agreement in 1971 has been remarkable. The FX market, which was once accessible only to large banks and institutions, is now within reach of average people. This significant change stems from market liberalisation, globalisation, and advancements in technology. Most people carry out some sort of foreign exchange transaction very frequently - this transaction occurs directly or indirectly. Plus, the fluctuations in exchange rates affect the financial lives of people on a regular basis. Yet the subject of foreign exchange is widely misunderstood because of its intricacies. It is essential to establish a basic understanding of FX because it has an important influence on our earnings, expenditures, savings, and investments. Though a lot has been written on the subject, much of the literature lacks precision. This book fills that gap by providing readers with a condensed and precise explanation of foreign exchange and its market dynamics. Tholoor M Thomas draws on his forty-one years of experience in the foreign exchange market to introduce the forex basics, factors affecting exchange rates, exchange rate arithmetic, exchange rate regimes, options and futures used to hedge currency risks, evolution of the market through history, major market participants, numerous world currencies, and the key jargons used in the industry. This book provides a wealth of information for students of finance, those looking to begin a career in foreign exchange, investment analysts, portfolio managers, and anyone interested in attaining a deeper knowledge of the foreign exchange universe.

The global financial market has undergone tremendous growth during the thirty years from 1980 to 2009. This period can be described as one of the most memorable in the history of financial markets. The growth of leading economies - in combination with the unparalleled bounce in the emerging economies - pushed global financial markets to new dimensions during this period. This development provided us with new investment products that changed the landscape of traditional investment methodology. However, the achievement has not been an easy one. During this span of time, we witnessed several political, economic, and technological developments that changed the course of financial history. I convey my understanding of those developments in the context of my own vast experience in the global financial market. This book will be a good reference guide for students of finance and professionals (mainly due to an array of market data and a summary of lessons learnt from various market events). Finally, I bring together reasonable market scenarios that will likely manifest in the near term.

The foreign exchange (FX) market is the largest financial market and has a daily turnover close to five trillion US dollars. The evolution of the foreign exchange market since the abrogation of the Bretton Woods agreement in 1971 has been remarkable. The FX market, which was once accessible only to large banks and institutions, is now within reach of average people. This significant change stems from market liberalisation, globalisation, and advancements in technology. Most people carry out some sort of foreign exchange transaction very frequently - this transaction occurs directly or indirectly. Plus, the fluctuations in exchange rates affect the financial lives of people on a regular basis. Yet the subject of foreign exchange is widely misunderstood because of its intricacies. It is essential to establish a basic understanding of FX because it has an important influence on our earnings, expenditures, savings, and investments. Though a lot has been written on the subject, much of the literature lacks precision. This book fills that gap by providing readers with a condensed and precise explanation of foreign exchange and its market dynamics. Tholoor M Thomas draws on his forty-one years of experience in the foreign exchange market to introduce the forex basics, factors affecting exchange rates, exchange rate arithmetic, exchange rate regimes, options and futures used to hedge currency risks, evolution of the market through history, major market participants, numerous world currencies, and the key jargons used in the industry. This book provides a wealth of information for students of finance, those looking to begin a career in foreign exchange, investment analysts, portfolio managers, and anyone interested in attaining a deeper knowledge of the foreign exchange universe.