To convert exchange rate data into exchange rate volatility in EViews:C

alculate Returns: Compute the daily (or chosen frequency) log returns of the exchange rate data.

Compute Volatility: Calculate the standard deviation of the returns over a specified period (e.g., a rolling window). This standard deviation represents the volatility.In EViews, you can use the @log function to compute returns and the @stdev function for volatility

Dear Chuck A Arize thanks a lot. I will use your guidance

There are several ways to measure volatility: 1) Simple volatility (standard deviation) 2) GARCH models 3) Moving average standard deviation. This could be easily done through EViews using the returns of the exchange rate. This is typically done using log returns.

Dear Ghazi Al-Assaf Thank you for your excellent guidance. I will try the GARCH model

Compute the daily returns of the exchange rate data

dear Justin Odadami Ejukwa thank you for your guidance

In EViews, you can convert exchange rate data to volatility by taking the log returns (log(exchange_rate_t / exchange_rate_t-1)), squaring the returns, and then applying a moving average or GARCH model to estimate conditional variance as a measure of volatility.