Sep 26, 2019 Furthermore, the results on volatility spillovers between the equity returns, bond yields and foreign exchange markets show that the transmissions This study investigates asymmetry in the impact of exchange rate on the Nigerian stock market using Nonlinear ARDL model by Shin et al. (2014), and it is the first clustering and ARCH effects in financial returns. Kanas (2000) found positive volatility spillover effects from stock returns to exchange rate changes for all the G -7 Nigerian Stock Market using the All-share index as a proxy for the market. The monthly closing returns of All-share index, exchange rates and interest rates were
Macroeconomic variables affect the performance of the stock market. Investors consider macroeconomic variables when they value stocks. Interest rate, exchange
Singh, Saurabh and Kapil, Ritika, Impact of Crude Oil Price and Exchange Rate on Performance of Indian Stock Market (February 1, 2016). Asian Journal of Research in Banking and Finance Vol. 6, No. 2, February 2016, pp. 17-29 . Since, the exchange rate can be defined as the price of currency of one country expressed in the currency of another country. So the change in the exchange rate might have some impact on the macroeconomic variables of any country. The stock market of Pakistan may be influenced due to change in exchange rate. The exchange rate is the value of the American dollar versus other currencies. The value of the dollar is both caused and reflected by interest rates, and interest rates have much to do with stock prices. Therefore, exchange rates affect stock prices and can be used to make predictions about the market. Suriani, et al.: Impact of Exchange Rate on Stock Market 386 International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015 and leading liquid exchange in Pakistan. It was declared the best performing stock market of the World for the year 2002.
Exchange rate changes do not affect stock market return of BRICS countries. Inversely, the impact from stock market returns to exchange rates is significant for all
that exchange rate volatility has negative and significant effect on the inflow of foreign direct investment to Nigeria both in the long run and in the short run. It further revealed that market capitalization, proxy for stock market performance was positively signed and statistically significant. Apparently, a stable and Singh, Saurabh and Kapil, Ritika, Impact of Crude Oil Price and Exchange Rate on Performance of Indian Stock Market (February 1, 2016). Asian Journal of Research in Banking and Finance Vol. 6, No. 2, February 2016, pp. 17-29 .
will affect investors' assessment of the performance of the company's current and expected Illustration 1:The Effect Of Exchange Rate to Stock Prices Scheme.
analyze the impact of USD to PKR exchange rate on the stock return market in Pakistan. element of predictability in the fluctuations of stock market returns. II. Jul 20, 2015 The relationship between stock and currency returns. If a country's equity market is expected to outperform that of other countries, should we Sep 6, 2018 The main way that the stock market can affect the currency markets is the rate of that were shown to be connected to currency performance. investigate the relationship between stock market performance and exchange rate. Any news/factors that effect future values of exchange rates will. returns to rise, while an appreciation would have the opposite effect. Amare and Mohsin (2000) examine the long-run association bet prices and exchange rates
The exchange rate and stock market are the two fundamental financial markets in the world. These two markets are playing key role in an international business all over the world.
Sep 26, 2019 Furthermore, the results on volatility spillovers between the equity returns, bond yields and foreign exchange markets show that the transmissions
Jul 17, 2015 The relationship between stock and currency returns. If a country's equity market is expected to outperform that of other countries, should we Oct 17, 2015 has impact on the performance of the stock market inflation created natural bias. consider impact of inflation on stock prices a single factor.