The impact of exchange rates on stock market returns: new evidence from seven free-floating currencies

Zarei, Alireza; Ariff, Mohamed; Bhatti, M. Ishaq

doi:10.1080/1351847x.2019.1589550

Cited by 23 publications

(16 citation statements)

References 52 publications

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“…They investigated that there is an important relation between the variables and the change in exchange rate affect the stock market indices (Mechri, Ben Hamad, Perttti, & Charfi, 2019). Zarei, Ariff and Bhatti (2019) have studied the impact of exchange rates on stock market returns by taking seven difference currencies. The study showed that there is an important relation between the stock return and the fluctional in currency's exchange rate (Zarei, Ariff, & Bhatti, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

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The Impact of Exchange Rate on Stock Market Indices

Ameen

Kamışlı

Temizel

2020

bmij

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The relationship between exchange rate and stock indices has risen many eyebrows so far. These two fundamental financial markets have a significant role in international business all around the globe. Furthermore, exchange rate is one of the most important indicators that rules in the decision-making process in all firms. In order to understand the relationship between the two variables this paper tried to investigate the relationship between exchange rate of USD/TL and BIST-100 index in Turkish stock market. The data have been collected from January 2009 to March 2020 based on monthly data. VAR model is applied in the study to exam the connections between the variables. The findings reveal that there is only a one-way causality between the variables. Nevertheless, the impulse response results show a negative impact from the shocks of each variable to another.

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Section: Literature Reviewmentioning

confidence: 99%

“…Zarei, Ariff and Bhatti (2019) have studied the impact of exchange rates on stock market returns by taking seven difference currencies. The study showed that there is an important relation between the stock return and the fluctional in currency's exchange rate (Zarei, Ariff, & Bhatti, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Exchange Rate on Stock Market Indices

Ameen

Kamışlı

Temizel

2020

bmij

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“…Los estudios que examinan el vínculo entre el tipo de cambio y la bolsa de valores, y su direccionalidad concluyen que existen relaciones estadísticamente significativas y que, dependiendo del país(es) y periodo, el tipo de cambio causa a la bolsa de valores (Luzarraga-Goitia, Regúlez-Castillo y Rodríguez-Castellanos, 2020; Zarei et al, 2019) o la relación es en ambos sentidos (Hersy y Koy, 2020; Xie et al, 2020).…”

Section: Introductionunclassified

Impacto de la Incertidumbre de la Política Económica y del tipo de cambio en el mercado accionario a nivel internacional (2001-2020): un análisis de causalidad y cointegración de panel

Castro

Rodríguez²,

Olivares³

2021

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Este artículo analiza el impacto que la incertidumbre de la política económica local (EPU) y el tipo de cambio tienen sobre el mercado accionario de 14 países durante el periodo (2001-2020). Se busca analizar si existe un efecto diferenciado de la EPU y del tipo de cambio entre los mercados de países no desarrollados y desarrollados. Para ello se estiman tres modelos de panel cointegrado: uno general, uno para países no desarrollados y otro para desarrollados, y se realizan las pruebas de causalidad de Granger para los tres paneles. Los resultados sugieren que existen relaciones significativas y negativas de la EPU, y en el tipo de cambio hacia la bolsa de valores; los índices bursátiles de países desarrollados son más sensibles a la EPU y tipo de cambio. Se comprueba que existe causalidad unidireccional de la EPU hacia el índice bursátil.

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“…It has been observed that there are many aspects utilised by various analysts to explore the possible bond or combination among the stock price and convertibility rate. There are various critical components of economy through which the convertibility rate can be affected (Zarei, Ariff, & Bhatti, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…The stock are influenced by various forces, and among them, convertibility rate fluctuation have considerable significance. However, when it comes to the share market and convertibility rate's relationship, despite of having been discussed widely there is no consensus on their relationship can be seen (Jain & Biswal, 2016;Zarei et al, 2019). The financial theory explains that the convertibility rates and interest should affect the position of the organization.…”

Section: Introductionmentioning

confidence: 99%

Impact of Changes in Exchange Rate on Stock Market: An Empirical Evidence from Indonesia

Amado

Choon

2020

International Journal of Applied Economics, Finance and Account

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The study examines the impact of changes in exchange rate on stock market the case of Indonesia. The quantitative approach is used to find out the connection among the two quantifiable variables fluctuations of the exchange rate and share market. The exchange rate of Indonesia is presented through the real effective rate of exchange while for share market; the time series of share market returns has been gathered. The study uses the ARDL model in order to determine whether the time series of fluctuations in the rate of exchange predict share market. The findings of the current study suggest that in the context of Indonesia, the longterm relationship between rate of exchange fluctuations and share market has been established.

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The impact of exchange rates on stock market returns: new evidence from seven free-floating currencies

Cited by 23 publications

References 52 publications

The Impact of Exchange Rate on Stock Market Indices

The Impact of Exchange Rate on Stock Market Indices

Impacto de la Incertidumbre de la Política Económica y del tipo de cambio en el mercado accionario a nivel internacional (2001-2020): un análisis de causalidad y cointegración de panel

Impact of Changes in Exchange Rate on Stock Market: An Empirical Evidence from Indonesia

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