LSTM Model based Time Series Modelling and Prognosis of Foreign Exchange Rates against US Dollar

In today’s global economy, precision in projecting macroeconomic characteristics such as the foreign exchange rate, or at the very least properly gauging the trend, is critical for any prospective investment. In recent time, application of artificial intelligence-based forecasting models for macroeconomic variables has been extremely fruitful. The global currency rate changed dramatically during the Covid-19 incident. This study examines the behaviour of the Australian dollar’s (AUD) daily exchange rates against the US dollar’s (USD) daily exchange rates from January 2016 to December 2020 and makes LSTM RNN-based predictions for the 2021 exchange rate. There are different sorts of performance metrics used in exchange rate forecasting to compute the accuracy of the projected result. This research investigates six performance metrics and discovers that the accuracy of the anticipated outcomes is satisfactory when compared to the actual data.