Prediction of the currency exchange rate using fuzzy time series

The exchange rate is the price of one currency in relation to another currency, expressed as a percentage. There is also a potential for fixed or dynamic exchange rates. Even though central banks control fixed exchange rates, the market determines floating exchange rates by the supply and demand of goods and services, not by the supply and demand of money. The main objective of this study is to predict the currency exchange rate from 1st July 2019 to 29th July 2022. The sub-objectives are to predict the currency exchange rate by using the Fuzzy Time Series and to check the accuracy of the prediction of the exchange rate by using Mean Absolute Percentage Error (MAPE) and Root Mean Square Error (RMSE). This study can help many sectors in Malaysia, such as governments, investors, and communities. Root Mean Square Error (RMSE) and Mean Absolute Percentage Error (MAPE) are used to evaluate this method's performance. The results show that Fuzzy Time Series produce a good forecast result because the analysis shows that Fuzzy Time Series have the lowest value of RMSE and MAPE which is below then one.