Comparison of neural network and hybrid genetic algorithm-neural network in forecasting of Philippine peso-US dollar exchange rate
College
Gokongwei College of Engineering
Department/Unit
Manufacturing Engineering and Management
Document Type
Conference Proceeding
Source Title
2014 International Conference on Humanoid, Nanotechnology, Information Technology, Communication and Control, Environment and Management, HNICEM 2014 - 7th HNICEM 2014 Joint with 6th International Symposium on Computational Intelligence and Intelligent Informatics, co-located with 10th ERDT Conference
Publication Date
1-1-2014
Abstract
This paper presents a new method in forecasting Philippine Peso to US Dollar exchange rate. Compared to the conventional way, in which the Philippine Dealing System (PDS), as monitored by the Central Bank, determines the rate by analysing demand and supply, the use of artificial neural network, having consumer price index, inflation rate, lending interest rate and purchasing power of the peso as the inputs is presented in this paper. Though foreign exchange rates vary on a daily basis, the output of this paper is prediction of the average foreign exchange rate every month. Artificial Neural Network serves as a powerful tool in forecasting Philippine Peso to US Dollar exchange rate not requiring expert knowledge in banking and finance thus letting the public gain access to a helpful beacon which is the foreign exchange rate. However, the accuracy of the forecast using artificial neural network is highly dependent on the volume of the training data, in this paper, an alternative algorithm that will increase the accuracy of the conventional artificial neural network with limited volume of training data is presented and analyze. © 2014 IEEE.
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Digitial Object Identifier (DOI)
10.1109/HNICEM.2014.7016218
Recommended Citation
Torregoza, M. R., & Dadios, E. P. (2014). Comparison of neural network and hybrid genetic algorithm-neural network in forecasting of Philippine peso-US dollar exchange rate. 2014 International Conference on Humanoid, Nanotechnology, Information Technology, Communication and Control, Environment and Management, HNICEM 2014 - 7th HNICEM 2014 Joint with 6th International Symposium on Computational Intelligence and Intelligent Informatics, co-located with 10th ERDT Conference https://doi.org/10.1109/HNICEM.2014.7016218
Disciplines
Finance and Financial Management | Manufacturing
Keywords
Foreign exchange rates—Forecasting; Neural networks (Computer science); Evolutionary computation
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