Forecasting the exchange rate between ASEAN currencies and USD

As the US has growing financial ties in Southeast Asia, how to accurately predict the ASEAN currencies becomes more and more important. This study applied the GM (1,1) model [6,9,10,11] to predict the exchange rate between the SGD and USD, IDR and USD, THB and USD, MYR and USD and PHP and USD from Jan 2002 to Feb 2011.The results show that the average accuracy of the forecasting model exceeds 99.38%.