Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman
This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market....
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Teknologi MARA Selangor
2017
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| Online Access: | https://ir.uitm.edu.my/id/eprint/32235/ |
| _version_ | 1848807971091382272 |
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| author | Arshad, Huda Muda, Ruhaini Osman, Ismah |
| author_facet | Arshad, Huda Muda, Ruhaini Osman, Ismah |
| author_sort | Arshad, Huda |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process. |
| first_indexed | 2025-11-14T22:51:17Z |
| format | Article |
| id | uitm-32235 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:51:17Z |
| publishDate | 2017 |
| publisher | Universiti Teknologi MARA Selangor |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-322352020-07-14T06:18:11Z https://ir.uitm.edu.my/id/eprint/32235/ Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman jeeir Arshad, Huda Muda, Ruhaini Osman, Ismah International finance Foreign exchange. Foreign exchange rates Malaysia This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process. Universiti Teknologi MARA Selangor 2017-12 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/32235/1/AJ_HUDA%20ARSHAD%20JEEIR%20B%2017.pdf Arshad, Huda and Muda, Ruhaini and Osman, Ismah (2017) Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman. (2017) Journal of Emerging Economies and Islamic Research (JEEIR) <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_and_Islamic_Research_=28JEEIR=29.html>, 5 (4). pp. 1-15. ISSN 2289-2559 https://journal.uitm.edu.my/ojs/index.php/JEEIR/ |
| spellingShingle | International finance Foreign exchange. Foreign exchange rates Malaysia Arshad, Huda Muda, Ruhaini Osman, Ismah Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman |
| title | Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman |
| title_full | Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman |
| title_fullStr | Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman |
| title_full_unstemmed | Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman |
| title_short | Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman |
| title_sort | impact of exchange rate and oil price on the yield of sovereign bond and sukuk: evidence from malaysian capital market / huda arshad, ruhaini muda and ismah osman |
| topic | International finance Foreign exchange. Foreign exchange rates Malaysia |
| url | https://ir.uitm.edu.my/id/eprint/32235/ https://ir.uitm.edu.my/id/eprint/32235/ |