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Dynamics of the exchange rate in Malaysia

Author

Listed:
  • Rabia Najaf

    (Department of Accounting & Finance, University of Lahore, Islamabad Campus)

  • Khakan Najaf

    (Department of Accounting & Finance, University of Lahore, Islamabad Campus)

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.Keywords: exchange rate, international trade, Malaysia stock exchange,

Suggested Citation

  • Rabia Najaf & Khakan Najaf, 2016. "Dynamics of the exchange rate in Malaysia," International Journal of Academic Research in Management and Business, International Journal of Academic Research in Management and Business, vol. 1(2), pages 101-112, October.
    • Handle: RePEc:iap:ijarmb:v:1:y:2016:i:2:p:101-112
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    References listed on IDEAS

    as
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