Prediction of foreign exchange rates by neural network and fuzzy system based techniques

Forecasting currency exchange rates are an important financial problem that is receiving increasing attention especially because of its intrinsic difficulty and practical applications. This paper presents improved neural network and fuzzy models used for exchange rate prediction. Several approaches including multi-layer perceprtons, radial basis functions, dynamic neural networks and neuro-fuzzy systems have been proposed and discussed. Their performances for one-step a-head predictions have been evaluated through a study, using real exchange daily rate values of the US Dollar vs. British Pound.