Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman

Foreign exchange rates have been highly volatile since the abandonment of the fixed exchange rate system in 1973. The volatility of the exchange rate is the source of exchange rate risk and this has certain implications on the economic growth of a country. This is because a rise in exchange rate vol...

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Main Authors:	Md Yusuf, Mazila, Abd Rahman, Hamisah
Format:	Research Reports
Language:	English
Published:	Research Management Institute (RMI) 2013
Subjects:	Economic geography of the oceans (General) Investment, capital formation, speculation
Online Access:	http://ir.uitm.edu.my/id/eprint/23699/ http://ir.uitm.edu.my/id/eprint/23699/1/LP_NUR%20ADILLA%20ABD%20RAHAMAN%20RMI%2010_5.pdf

id	uitm-23699
recordtype	eprints
spelling	uitm-236992019-04-16T08:47:19Z http://ir.uitm.edu.my/id/eprint/23699/ Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman Md Yusuf, Mazila Abd Rahman, Hamisah Economic geography of the oceans (General) Investment, capital formation, speculation Foreign exchange rates have been highly volatile since the abandonment of the fixed exchange rate system in 1973. The volatility of the exchange rate is the source of exchange rate risk and this has certain implications on the economic growth of a country. This is because a rise in exchange rate volatility is said to deters multinational companies and foreign investors from engaging in international activities. When currency appreciates, the sales and profits of exporters will decline and stock prices will drop due to the fact that exporters lose their international competitiveness. On the other hand, importers' competitiveness in domestic market will increase which would lead to the increase in profit and stock prises. The scenarios would be opposite in the case of currency depreciation. Equity markets and foreign exchange markets have been regarded as sensitive segments of the financial market due to the impact of any policy changes gets quickly reflected in both markets. The issue of inter-relation between stock returns and exchange rates has often been discussed by economists since they both play important roles in influencing the development of a country's economy. Changes in stock prices may influence the movements in the exchange rate, via firm's portfolio adjustments [1]. Due to this dynamic interrelationship between the two markets has prompted researchers, policy makers and analysts to carry out detailed analyses of this relationship. Research Management Institute (RMI) 2013 Research Reports NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/23699/1/LP_NUR%20ADILLA%20ABD%20RAHAMAN%20RMI%2010_5.pdf Md Yusuf, Mazila and Abd Rahman, Hamisah (2013) Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman. [Research Reports] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Economic geography of the oceans (General) Investment, capital formation, speculation
spellingShingle	Economic geography of the oceans (General) Investment, capital formation, speculation Md Yusuf, Mazila Abd Rahman, Hamisah Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman
description	Foreign exchange rates have been highly volatile since the abandonment of the fixed exchange rate system in 1973. The volatility of the exchange rate is the source of exchange rate risk and this has certain implications on the economic growth of a country. This is because a rise in exchange rate volatility is said to deters multinational companies and foreign investors from engaging in international activities. When currency appreciates, the sales and profits of exporters will decline and stock prices will drop due to the fact that exporters lose their international competitiveness. On the other hand, importers' competitiveness in domestic market will increase which would lead to the increase in profit and stock prises. The scenarios would be opposite in the case of currency depreciation. Equity markets and foreign exchange markets have been regarded as sensitive segments of the financial market due to the impact of any policy changes gets quickly reflected in both markets. The issue of inter-relation between stock returns and exchange rates has often been discussed by economists since they both play important roles in influencing the development of a country's economy. Changes in stock prices may influence the movements in the exchange rate, via firm's portfolio adjustments [1]. Due to this dynamic interrelationship between the two markets has prompted researchers, policy makers and analysts to carry out detailed analyses of this relationship.
format	Research Reports
author	Md Yusuf, Mazila Abd Rahman, Hamisah
author_facet	Md Yusuf, Mazila Abd Rahman, Hamisah
author_sort	Md Yusuf, Mazila
title	Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman
title_short	Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman
title_full	Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman
title_fullStr	Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman
title_full_unstemmed	Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman
title_sort	equity market and exchange rate volatility in asean 5 countries / prof madya dr mazila md yusuf and hamisah abd rahman
publisher	Research Management Institute (RMI)
publishDate	2013
url	http://ir.uitm.edu.my/id/eprint/23699/ http://ir.uitm.edu.my/id/eprint/23699/1/LP_NUR%20ADILLA%20ABD%20RAHAMAN%20RMI%2010_5.pdf
first_indexed	2023-09-18T23:11:11Z
last_indexed	2023-09-18T23:11:11Z
_version_	1777418813477748736

Equity market and exchange rate volatility in Asean 5 countries / Prof Madya Dr Mazila Md Yusuf and Hamisah Abd Rahman

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