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Prediction of Dollar Exchange Rate Based on Wavelet Neural Network

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Cyber Security Intelligence and Analytics (CSIA 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 928))

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Abstract

In order to predict the trend of the exchange rate between USD and RMB in the financial world, a method for predicting the exchange rate between USD and RMB based on wavelet neural network and grey relational analysis was proposed. The grey relational analysis was used to calculate the correlation degree between the influencing factors and the exchange rate of USD, and several parameters with high correlation degree were optimized. The wavelet neural network was used to find the mapping relationship between the influencing factors and the exchange rate of USD. The method was tested by selecting the data related to the exchange rate of USD in the third quarter of 2018. The experimental results showed that the average relative error of the calculated exchange rate of USD was 1.43%. After the gray correlation analysis method was used, the experimental convergence speed and calculation accuracy were also improved. Therefore, the wavelet neural network method can use the known data of dollar exchange rate to predict the change trend of USD exchange rate, which has a high reliability, practicality and application prospect in the field of financial research.

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Acknowledgments

This research was supported by Humanities and Social Sciences Project of Hubei Provincial Department of Education (Project No. 15G156), Funded Project of Hubei Business Service Development Center (Project No. 2017Y009), and Funded Project of Wuhan Technology and Business University (Project No. A2014002).

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Authors and Affiliations

  1. School of Economics and Business Foreign Languages, Wuhan Technology and Business University, Wuhan, 430065, China

    Chen Liu & Hongyan Wu

  2. Hubei Province Commerce and Service Development Research Center, Wuhan, 430065, China

    Chen Liu & Hongyan Wu

  3. Department of Public Course, Wuhan Technology and Business University, Wuhan, 430065, China

    Wenbin Liu

  4. College of Information Engineering, Wuchang Institute of Technology, Wuhan, 430065, China

    Wenbin Liu

Authors
  1. Chen Liu
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  2. Hongyan Wu
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  3. Wenbin Liu
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Corresponding author

Correspondence to Wenbin Liu .

Editor information

Editors and Affiliations

  1. Shanghai University, Shanghai, China

    Zheng Xu

  2. University of Texas at San Antonio, San Antonio, TX, USA

    Kim-Kwang Raymond Choo

  3. University of Guelph, Guelph, ON, Canada

    Ali Dehghantanha

  4. Kennesaw State University, Marietta, GA, USA

    Reza Parizi

  5. Manchester Metropolitan University, Stockport, UK

    Mohammad Hammoudeh

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Liu, C., Wu, H., Liu, W. (2020). Prediction of Dollar Exchange Rate Based on Wavelet Neural Network. In: Xu, Z., Choo, KK., Dehghantanha, A., Parizi, R., Hammoudeh, M. (eds) Cyber Security Intelligence and Analytics. CSIA 2019. Advances in Intelligent Systems and Computing, vol 928. Springer, Cham. https://doi.org/10.1007/978-3-030-15235-2_116

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