The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh

This paper examines the relationship between the exchange rate volatility in Malaysia and its factors; interest rate and inflation rate using Johansen cointegration analysis based on ECM. The relationship among those variables is investigated using monthly data from 1999 to 2009. The researcher focu...

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Main Author:	Jusoh, Nurmadihah
Format:	Student Project
Language:	English
Published:	Faculty of Business and Management 2010
Subjects:	Money and prices. Inflation. Deflation. Purchasing power
Online Access:	http://ir.uitm.edu.my/id/eprint/19156/ http://ir.uitm.edu.my/id/eprint/19156/2/PPb_NURMADIHAH%20JUSOH%20BM%20T%2010_5.pdf

id	uitm-19156
recordtype	eprints
spelling	uitm-191562018-12-18T04:49:38Z http://ir.uitm.edu.my/id/eprint/19156/ The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh Jusoh, Nurmadihah Money and prices. Inflation. Deflation. Purchasing power This paper examines the relationship between the exchange rate volatility in Malaysia and its factors; interest rate and inflation rate using Johansen cointegration analysis based on ECM. The relationship among those variables is investigated using monthly data from 1999 to 2009. The researcher focused on that particular period of study because the researcher wants to know how strong the Malaysia Ringgit after the currency crisis in 1997. After having completed the analysis by using Vector Error Correction Model (VECM), the findings shows that interest rate has positive relationship with the exchange rate volatility while inflation rate has negative relationship in the long run. On the other hand, Granger causality resulted that there is unidirectional from interest rate to inflation rate and from inflation rate to exchange rate changes in the short run. Faculty of Business and Management 2010 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/19156/2/PPb_NURMADIHAH%20JUSOH%20BM%20T%2010_5.pdf Jusoh, Nurmadihah (2010) The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Money and prices. Inflation. Deflation. Purchasing power
spellingShingle	Money and prices. Inflation. Deflation. Purchasing power Jusoh, Nurmadihah The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh
description	This paper examines the relationship between the exchange rate volatility in Malaysia and its factors; interest rate and inflation rate using Johansen cointegration analysis based on ECM. The relationship among those variables is investigated using monthly data from 1999 to 2009. The researcher focused on that particular period of study because the researcher wants to know how strong the Malaysia Ringgit after the currency crisis in 1997. After having completed the analysis by using Vector Error Correction Model (VECM), the findings shows that interest rate has positive relationship with the exchange rate volatility while inflation rate has negative relationship in the long run. On the other hand, Granger causality resulted that there is unidirectional from interest rate to inflation rate and from inflation rate to exchange rate changes in the short run.
format	Student Project
author	Jusoh, Nurmadihah
author_facet	Jusoh, Nurmadihah
author_sort	Jusoh, Nurmadihah
title	The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh
title_short	The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh
title_full	The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh
title_fullStr	The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh
title_full_unstemmed	The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh
title_sort	relationship between interest rate and inflation towards exchange rate volatility in malaysia/ nurmadihah jusoh
publisher	Faculty of Business and Management
publishDate	2010
url	http://ir.uitm.edu.my/id/eprint/19156/ http://ir.uitm.edu.my/id/eprint/19156/2/PPb_NURMADIHAH%20JUSOH%20BM%20T%2010_5.pdf
first_indexed	2023-09-18T23:01:58Z
last_indexed	2023-09-18T23:01:58Z
_version_	1777418233510363136

The relationship between interest rate and inflation towards exchange rate volatility in Malaysia/ Nurmadihah Jusoh

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