Herd behaviour in foreign exchange market

Abstract This study examines the presence of herding behaviour in forex market Pakistan. By analysing daily returns top six traded currencies from January 2015 to December 2019, current research explores investors towards investment currencies. Data is analysed using model proposed by Chang et al. (2000). Results estimation techniques provide evidence herd among investors. Findings suggest that do not rely on their own decision-making; rather they follow patterns others. Furthermore, this imitating same up and down events. significant insights for future researchers about decision-making .