Stock price and Foreign Exchange Rate in Malaysian Context
This study investigates the correlation and causality direction between FTSE Bursa Malaysia Kuala Lumpur Composite Index and five foreign exchange rates namely United States Dollar (USD), Great Britain Pounds (GBP), Euro Dollar (EURO), Singapore Dollar (SGD) and Thailand Bhat (THAI) using a standard...
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| Format: | Book Section |
| Language: | English |
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School of Social Sciences
2015
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| Online Access: | http://eprints.usm.my/37620/ http://eprints.usm.my/37620/1/sspis_2015_ms398_-_407.pdf |
| _version_ | 1848878242463744000 |
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| author | Thinagar, Sharmila |
| author_facet | Thinagar, Sharmila |
| author_sort | Thinagar, Sharmila |
| building | USM Institutional Repository |
| collection | Online Access |
| description | This study investigates the correlation and causality direction between FTSE Bursa Malaysia Kuala Lumpur Composite Index and five foreign exchange rates namely United States Dollar (USD), Great Britain Pounds (GBP), Euro Dollar (EURO), Singapore Dollar (SGD) and Thailand Bhat (THAI) using a standard time series method. Using a monthly data spanning from January 1994 until December 2014. The empirical findings shows that the stock return granger cause the return of exchange rate. Thus, it can be concluded that there is a unidirectional causality between stock market and exchange rate and it is supportive of “portfolio balances” model. This study implied that the stability of the exchange rate is defend on the stability of the stock price, and therefore the policy makers need to observe precisely the movement of stock market and exchange rate. |
| first_indexed | 2025-11-15T17:28:13Z |
| format | Book Section |
| id | usm-37620 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:28:13Z |
| publishDate | 2015 |
| publisher | School of Social Sciences |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-376202017-11-23T07:32:45Z http://eprints.usm.my/37620/ Stock price and Foreign Exchange Rate in Malaysian Context Thinagar, Sharmila H Social Sciences This study investigates the correlation and causality direction between FTSE Bursa Malaysia Kuala Lumpur Composite Index and five foreign exchange rates namely United States Dollar (USD), Great Britain Pounds (GBP), Euro Dollar (EURO), Singapore Dollar (SGD) and Thailand Bhat (THAI) using a standard time series method. Using a monthly data spanning from January 1994 until December 2014. The empirical findings shows that the stock return granger cause the return of exchange rate. Thus, it can be concluded that there is a unidirectional causality between stock market and exchange rate and it is supportive of “portfolio balances” model. This study implied that the stability of the exchange rate is defend on the stability of the stock price, and therefore the policy makers need to observe precisely the movement of stock market and exchange rate. School of Social Sciences 2015 Book Section PeerReviewed application/pdf en http://eprints.usm.my/37620/1/sspis_2015_ms398_-_407.pdf Thinagar, Sharmila (2015) Stock price and Foreign Exchange Rate in Malaysian Context. In: Conference Proceedings of Social Sciences Postgraduate International Seminar (SSPIS). School of Social Sciences, Pulau Pinang, Malaysia, pp. 398-407. ISBN 978-967-11473-2-0 |
| spellingShingle | H Social Sciences Thinagar, Sharmila Stock price and Foreign Exchange Rate in Malaysian Context |
| title | Stock price and Foreign Exchange Rate in Malaysian Context |
| title_full | Stock price and Foreign Exchange Rate in Malaysian Context |
| title_fullStr | Stock price and Foreign Exchange Rate in Malaysian Context |
| title_full_unstemmed | Stock price and Foreign Exchange Rate in Malaysian Context |
| title_short | Stock price and Foreign Exchange Rate in Malaysian Context |
| title_sort | stock price and foreign exchange rate in malaysian context |
| topic | H Social Sciences |
| url | http://eprints.usm.my/37620/ http://eprints.usm.my/37620/1/sspis_2015_ms398_-_407.pdf |