Network Topology of Foreign Exchange Rate

Shamshuritawati Sharif, Nur Syahidah Yusoff, Maman A. Djauhari

Abstract


In this paper we use a network topology approach to examine the interrelationship of 55 world currencies which is based on correlation analysis. With this point of view, those relationships can be measured by a correlation structure among currencies. To analyse that network, we filter the important information contained therein by using minimum spanning tree, and we interpret it by using a centrality measures. This topology will gives us a useful guide to understand their behaviour and to determine the dominance currency in the network as part of a complex network. The results show that HKD-Hong Kong Dollar is the most dominance currencies, followed by in order of importance; SGD-Singapore Dollar, USD-US Dollar, SAR-Saudi Riyal, and TWD-New Taiwan Dollar.


Full Text: PDF DOI: 10.5539/mas.v6n11p35

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This work is licensed under a Creative Commons Attribution 3.0 License.

Modern Applied Science   ISSN 1913-1844 (Print)   ISSN 1913-1852 (Online)

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