The Predibility of Asean-5 Exchange Rates

In an attempt to determine the predictability of Asean exchange rates, five currencies including Malaysian ringgit, Thailand baht, Singapore dollar, Indonesian rupiah and the Philippines peso, denominated in US dollar as well as Japanese yen, were modeled using advanced time series analysis. Results...

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Main Authors: Ahmad Zubaidi, Baharumshah, Liew, Khim Sen
Format: Working Paper
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2000
Subjects:
Online Access:http://ir.unimas.my/id/eprint/3249/
http://ir.unimas.my/id/eprint/3249/1/The%2BPredibility%2Bof%2BAsean-5%2BExchange%2BRates%2B%2528abstract%2529%20%281%29%20%281%29.pdf
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author Ahmad Zubaidi, Baharumshah
Liew, Khim Sen
author_facet Ahmad Zubaidi, Baharumshah
Liew, Khim Sen
author_sort Ahmad Zubaidi, Baharumshah
building UNIMAS Institutional Repository
collection Online Access
description In an attempt to determine the predictability of Asean exchange rates, five currencies including Malaysian ringgit, Thailand baht, Singapore dollar, Indonesian rupiah and the Philippines peso, denominated in US dollar as well as Japanese yen, were modeled using advanced time series analysis. Results suggested that Singapore exchange rate could be better predicted when denominated in US dollar, most probably because the East Asian Financial Crisis did not affect them both. On the other hand, other Asean exchange rates were better predicted when denominated in Japanese yen, as they had closer economic ties with Japan. However, while Japan had undergone serious recession after the crisis, it did not experience dramatic political instability as experienced by Indonesia, hence Indonesian rupiah remained unpredictable by yen. These results show that although advanced time series analysis dealt with economic fundamentals implicitly; it still could be a powerful tool for exchange rates modeling and forecasting, especially in the medium to long term.
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2000
publisher Universiti Malaysia Sarawak, (UNIMAS)
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spelling unimas-32492020-08-10T01:18:23Z http://ir.unimas.my/id/eprint/3249/ The Predibility of Asean-5 Exchange Rates Ahmad Zubaidi, Baharumshah Liew, Khim Sen HB Economic Theory HF Commerce In an attempt to determine the predictability of Asean exchange rates, five currencies including Malaysian ringgit, Thailand baht, Singapore dollar, Indonesian rupiah and the Philippines peso, denominated in US dollar as well as Japanese yen, were modeled using advanced time series analysis. Results suggested that Singapore exchange rate could be better predicted when denominated in US dollar, most probably because the East Asian Financial Crisis did not affect them both. On the other hand, other Asean exchange rates were better predicted when denominated in Japanese yen, as they had closer economic ties with Japan. However, while Japan had undergone serious recession after the crisis, it did not experience dramatic political instability as experienced by Indonesia, hence Indonesian rupiah remained unpredictable by yen. These results show that although advanced time series analysis dealt with economic fundamentals implicitly; it still could be a powerful tool for exchange rates modeling and forecasting, especially in the medium to long term. Universiti Malaysia Sarawak, (UNIMAS) 2000 Working Paper NonPeerReviewed text en http://ir.unimas.my/id/eprint/3249/1/The%2BPredibility%2Bof%2BAsean-5%2BExchange%2BRates%2B%2528abstract%2529%20%281%29%20%281%29.pdf Ahmad Zubaidi, Baharumshah and Liew, Khim Sen (2000) The Predibility of Asean-5 Exchange Rates. [Working Paper]
spellingShingle HB Economic Theory
HF Commerce
Ahmad Zubaidi, Baharumshah
Liew, Khim Sen
The Predibility of Asean-5 Exchange Rates
title The Predibility of Asean-5 Exchange Rates
title_full The Predibility of Asean-5 Exchange Rates
title_fullStr The Predibility of Asean-5 Exchange Rates
title_full_unstemmed The Predibility of Asean-5 Exchange Rates
title_short The Predibility of Asean-5 Exchange Rates
title_sort predibility of asean-5 exchange rates
topic HB Economic Theory
HF Commerce
url http://ir.unimas.my/id/eprint/3249/
http://ir.unimas.my/id/eprint/3249/1/The%2BPredibility%2Bof%2BAsean-5%2BExchange%2BRates%2B%2528abstract%2529%20%281%29%20%281%29.pdf