Determinants that affecting exchange rate in Malaysia / Sabirin Saleh

This study will focus on the determinants that affecting exchange rate in Malaysia. The objective of this study is to examine the relationship between Inflation Rate, Money Supply, Gross Domestic Product and Foreign Direct Investment towards Exchange Rate in Malaysia. In order to achieve the objecti...

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Main Author: Saleh, Sabirin
Format: Student Project
Language:English
Published: Faculty of Business and Management 2018
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/21279/
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author Saleh, Sabirin
author_facet Saleh, Sabirin
author_sort Saleh, Sabirin
building UiTM Institutional Repository
collection Online Access
description This study will focus on the determinants that affecting exchange rate in Malaysia. The objective of this study is to examine the relationship between Inflation Rate, Money Supply, Gross Domestic Product and Foreign Direct Investment towards Exchange Rate in Malaysia. In order to achieve the objective, this study applies the Autoregressive distributed lag model and used annually data over the period 1975 until 2015 from authorized sources. The study revealed that in ARDL Model there is a significant positive and insignificant positive relationship between Exchange rate and the selected determinants which is Inflation Rate and Money Supply respectively. Meanwhile, Gross Domestic Product and Foreign Direct Investment are found negative but significant towards Exchange Rate. This study is important for the government to retain tight monetary and fiscal policies in order to stable exchange rate in the Malaysia. Besides that, central bank will also get benefits in order to promote monetary authorities at managing exchange rate effectively.
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format Student Project
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institution Universiti Teknologi MARA
institution_category Local University
language English
last_indexed 2025-11-14T22:07:22Z
publishDate 2018
publisher Faculty of Business and Management
recordtype eprints
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spelling uitm-212792018-10-22T09:20:27Z https://ir.uitm.edu.my/id/eprint/21279/ Determinants that affecting exchange rate in Malaysia / Sabirin Saleh Saleh, Sabirin Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product Interest rates Money supply Foreign exchange. Foreign exchange rates Malaysia This study will focus on the determinants that affecting exchange rate in Malaysia. The objective of this study is to examine the relationship between Inflation Rate, Money Supply, Gross Domestic Product and Foreign Direct Investment towards Exchange Rate in Malaysia. In order to achieve the objective, this study applies the Autoregressive distributed lag model and used annually data over the period 1975 until 2015 from authorized sources. The study revealed that in ARDL Model there is a significant positive and insignificant positive relationship between Exchange rate and the selected determinants which is Inflation Rate and Money Supply respectively. Meanwhile, Gross Domestic Product and Foreign Direct Investment are found negative but significant towards Exchange Rate. This study is important for the government to retain tight monetary and fiscal policies in order to stable exchange rate in the Malaysia. Besides that, central bank will also get benefits in order to promote monetary authorities at managing exchange rate effectively. Faculty of Business and Management 2018 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/21279/1/PPb_SABIRIN%20SALEH%20M%20BM%2018_5.pdf Saleh, Sabirin (2018) Determinants that affecting exchange rate in Malaysia / Sabirin Saleh. (2018) [Student Project] <http://terminalib.uitm.edu.my/21279.pdf> (Unpublished)
spellingShingle Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
Interest rates
Money supply
Foreign exchange. Foreign exchange rates
Malaysia
Saleh, Sabirin
Determinants that affecting exchange rate in Malaysia / Sabirin Saleh
title Determinants that affecting exchange rate in Malaysia / Sabirin Saleh
title_full Determinants that affecting exchange rate in Malaysia / Sabirin Saleh
title_fullStr Determinants that affecting exchange rate in Malaysia / Sabirin Saleh
title_full_unstemmed Determinants that affecting exchange rate in Malaysia / Sabirin Saleh
title_short Determinants that affecting exchange rate in Malaysia / Sabirin Saleh
title_sort determinants that affecting exchange rate in malaysia / sabirin saleh
topic Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
Interest rates
Money supply
Foreign exchange. Foreign exchange rates
Malaysia
url https://ir.uitm.edu.my/id/eprint/21279/