Some Rank-Based Two-Phase Procedures in Sequential Monitoring of Exchange Rate

Financial or economic crisis of 2008 and its severe negative impact on the human race is currently one of the focal themes of financial research. During this crisis period the Indian Rupee (INR) has significantly lost its ground compared to the United States Dollar (USD). In the present paper, we address the issues identifying warning and action points in a time sequential monitoring of the exchange rate records. We developed some approximate power 1 partially sequential nonparametric tests that are based on both usual and sequential ranks. Proposed procedures necessarily help us to capitalize the best features of the two different rank procedures. We use Wilcoxon score and the idea of curved stopping boundaries as in Bandyopadhyay et al. (2008). We vividly present our numerical findings obtained by sequential Monte-Carlo procedures. We aim at controlling the type I error rate in course of structural monitoring