Impact of Exchange Rate on Stock Market
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. It is necessary to understand the relationship between the both markets so that the investors may be able to invest in a...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2015-10-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/1510 |
| _version_ | 1797908460729270272 |
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| author | Seri Suriani M. Dileep Kumar Farhan Jamil Saqib Muneer |
| author_facet | Seri Suriani M. Dileep Kumar Farhan Jamil Saqib Muneer |
| author_sort | Seri Suriani |
| collection | DOAJ |
| description |
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. It is necessary to understand the relationship between the both markets so that the investors may be able to invest in a better way by taking the minimum risk. This paper investigates the relationship between the stock market and exchange market of Pakistan. KSE-100 index is used as a substitute of Stock Prices while currency rate of Pak Rupee against US Dollar (Rs/US$) is taken for exchange rate exposure. The data is on monthly basis and the time period is from January 2004 to December 2009. The findings of the study indicate that there is no relationship exists between exchange rate and stock price and both the variables are independent of each other.
Keywords: Fundamental Financial Markets, Exchange Rates, Stock Market
JEL Classifications: F31, O16
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| first_indexed | 2024-04-10T10:54:04Z |
| format | Article |
| id | doaj.art-390cecbe277d4fa5b2fde976f1ae0a79 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:54:04Z |
| publishDate | 2015-10-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-390cecbe277d4fa5b2fde976f1ae0a792023-02-15T16:20:03ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382015-10-0151SImpact of Exchange Rate on Stock MarketSeri SurianiM. Dileep KumarFarhan JamilSaqib Muneer The exchange rate and stock market are the two fundamental financial markets in the world. These two markets are playing key role in an international business all over the world. It is necessary to understand the relationship between the both markets so that the investors may be able to invest in a better way by taking the minimum risk. This paper investigates the relationship between the stock market and exchange market of Pakistan. KSE-100 index is used as a substitute of Stock Prices while currency rate of Pak Rupee against US Dollar (Rs/US$) is taken for exchange rate exposure. The data is on monthly basis and the time period is from January 2004 to December 2009. The findings of the study indicate that there is no relationship exists between exchange rate and stock price and both the variables are independent of each other. Keywords: Fundamental Financial Markets, Exchange Rates, Stock Market JEL Classifications: F31, O16 http://mail.econjournals.com/index.php/ijefi/article/view/1510 |
| spellingShingle | Seri Suriani M. Dileep Kumar Farhan Jamil Saqib Muneer Impact of Exchange Rate on Stock Market International Journal of Economics and Financial Issues |
| title | Impact of Exchange Rate on Stock Market |
| title_full | Impact of Exchange Rate on Stock Market |
| title_fullStr | Impact of Exchange Rate on Stock Market |
| title_full_unstemmed | Impact of Exchange Rate on Stock Market |
| title_short | Impact of Exchange Rate on Stock Market |
| title_sort | impact of exchange rate on stock market |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/1510 |
| work_keys_str_mv | AT serisuriani impactofexchangerateonstockmarket AT mdileepkumar impactofexchangerateonstockmarket AT farhanjamil impactofexchangerateonstockmarket AT saqibmuneer impactofexchangerateonstockmarket |