Exchange Rate Movements and International Interdependence of Stock Markets

1989 ◽  
Author(s):  
Jagdeep S. Bhandari ◽  
Hans Genberg
Keyword(s):  
Exchange Rate ◽  
Stock Markets ◽  
Exchange Rate Movements

Do stock markets have predictive content for exchange rate movements?

2019 ◽  
Vol 38 (7) ◽  
pp. 699-713 ◽  
Author(s):  
Shiu‐Sheng Chen ◽  
Cheng‐Che Hsu
Keyword(s):  
Exchange Rate ◽  
Stock Markets ◽  
Exchange Rate Movements ◽  
Predictive Content

Gold Price, Crude Oil, Exchange Rate and Stock Markets

2016 ◽  
Vol 3 (2) ◽  
pp. 1-13
Author(s):  
Shailesh Rastogi
Keyword(s):  
Exchange Rate ◽  
Crude Oil ◽  
Stock Markets ◽  
World Order ◽  
Crude Oil Prices ◽  
Internal Parameters ◽  
Exchange Rate Movements ◽  
Degree Of Association ◽  
Globalized World

In the globalized world of 21st century, the world order has become dynamic. But the parameters of success are same. A country having only internal success cannot sustain for long and similarly for external success. External success is largely dependent upon exchange rate movements and its management by central banks especially for emerging economies. Internal success is reflected in the stock markets of the nations. In this paper long-term association between external and internal parameters, have been explored. For external parameters, not only exchange rate but crude oil prices and gold prices have also been taken. For internal success, stock markets have been taken as a parameter. Johansen's Cointegration test, error-correction model and neural network have been deployed to find out the association among internal and external parameters of success for nations. The results have demonstrated the long-term association among the parameters but degree of association has been found to be weak.

scholarly journals Exchange Rates and Monetary Fundamentals: What Do We Learn from Linear and Nonlinear Regressions?

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Guangfeng Zhang
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Correction Model ◽  
Exchange Rate Dynamics ◽  
Long Run ◽  
Exchange Rate Movements ◽  
Short Run ◽  
Us Dollar ◽  
Linear And Nonlinear ◽  
Japanese Yen

This paper revisits the association between exchange rates and monetary fundamentals with the focus on both linear and nonlinear approaches. With the monthly data of Euro/US dollar and Japanese yen/US dollar, our linear analysis demonstrates the monetary model is a long-run description of exchange rate movements, and our nonlinear modelling suggests the error correction model describes the short-run adjustment of deviations of exchange rates, and monetary fundamentals are capable of explaining exchange rate dynamics under an unrestricted framework.

scholarly journals Exchange Rate, Uncertainty and Foreign Direct Investment Inflow in West African Monetary Zone

2018 ◽  
Vol 20 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Perekunah B. Eregha
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Exchange Rate Volatility ◽  
Commodity Prices ◽  
Fixed Effect Model ◽  
West African ◽  
Effect Model ◽  
Exchange Rate Movements ◽  
Global Shocks

Exchange-rate movements are mostly unpredictable, and this tends to affect both trade and foreign investment flows. This is because foreign investors are unclear on the returns to investment decisions in such cases. Hence, this study examines the effect of exchange rate, its volatility and uncertainty on foreign direct investment (FDI) inflow in West African monetary zone (WAMZ). The study covers the period1980–2014, and the within estimator for the fixed effect model is employed. The study accounts for both exchange rate volatility and uncertainty measures which are anticipated and unanticipated exchange rate innovations measures, respectively. The results show that exchange-rate movements in WAMZ countries are more of unanticipated than anticipated innovations in affecting FDI inflow. Therefore, policies aimed at targeting exchange-rate stability are essential in the WAMZ countries since investors are profit maximizers; hence, investment uncertainties must be kept as low as possible. Also since WAMZ export sectors are primary products based, policies should be geared towards the diversification of the export sectors to combat unanticipated global shocks from commodity prices movement in having an effect on the exchange rate through the foreign exchange reserve channel.

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