DYNAMICS OF THE EXCHANGE RATE IN MALAYSIA
Keywords:
Abstract
Exchange rate is known as the heart of international trade and act as the integral part of the economic growth .Malaysia is also facing the problem of instability of exchange rate like other countries. Stock market is known as the backbone of all the developing and under developing countries .Many scholars are doing work on this theory that stock market has the crucial role in the development of the economy. It is also known as the channel between surplus funds and internal and external lenders. In this era, it is very interesting issues to assess the origin of the volatility the main objective of this study to explain the impact of exchange rate on the economy of Malaysia. It is clear from the results that there is there is positive relationship between economic and exchange rate. In this study, we have seen the association between Malaysia stock rate movements and stock returns vitality .our study is focusing towards Malaysia currency and exchange rate movement. In this study the daily data is more beneficial. For this purpose we have used the natural logarithm .our study is suggested that there is need of stability in exchange rate for the purpose of foreign investment.
References
Rabianajaf ,khakan najaf (2016): A STUDY OF EXCHANGE RATES MOVEMENT AND STOCK MARKET VOLATILITY International Journal of Research – Granthaalayah, Vol. 4, No. 1 (2016): 70-79.
Aggarwal, R. (2003). Exchange rates and stock prices: A study of the US capital markets
under floating exchange rates. Akron Business and Economic Review, 12, 7-12.
Babu, M. S., & Prabheesh, K. (2007). Causal Relationships between Foreign Institutional
Investments and stock returns in India. International Journal of Trade and Global
Markets, Vol. 1 No. 3/2008, 259-265.
Ajayi, R. A., & Mougoue, M. (1996). On the dynamic relation between stock prices and
Exchange Rates. Journal of Financial Research, 19, 193-207.
Doong, S.-C., Yang, S.-Y., & Wang, A. T. (2005). The Emerging Relationship and Pricing
of Stocks and Exchange Rates: Empirical Evidence from Asian Emerging Markets.
Journal of American Academy of Business, Cambridge, 7, (1) , 118-123.
Joseph, N. (2002). Modelling the impacts of interest rate and exchange rate changes on
UK Stock Returns.Derivatives Use, Trading & Regulation, 7(4), 306-323.
Yau, H.-Y., & Nieh, C. -C. (2006). Interrelationships among stock prices of Taiwan and
Japan and NTD/Yenexchange rate. Journal of Asian Economics, 17, 535–552.
Wu, Y. (2000). Stock prices and exchange rates in a VEC model-the case of Singapore in
the 1990s. Journal of Economics and Finance, 24(3), 260-274.
Takeshi, I. (2008, November). The causal relationships in mean and variance betweenstock returns and Foreign institutional investment in India. IDE Paper Discussion, No.180
Parkinson, J. M. (1987). The EMH and the CAPM on the Nairobi Stock Exchange. EastAfrican Economic Review, 13, 105-110.
Naeem, M., & Abdul, R. (2002). Stock Prices and Exchange Rates: Are they related?Evidence from South Asian Countries. Department Economics & Finance, Institute ofBusiness Administration, Karachi.
Published
Issue
Section
License
Copyright Notice
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in World Scholars journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
