scholarly journals An Impact of Exchange Rate on Indian Stock Exchanges, BSE , NSE

2019 ◽  
Vol 9 (1) ◽  
pp. 27-32
Author(s):  
M. Yasodha et al., M. Yasodha et al., ◽  
Keyword(s):  
Exchange Rate ◽  
Stock Exchanges

scholarly journals The Role of Exchange Rates in the Stock Price Development of Chemical Companies in the Visegrad Four Countries

2019 ◽  
Vol 22 (3) ◽  
pp. 117-129
Author(s):  
Jana Šimáková ◽  
Nikola Rusková
Keyword(s):  
Exchange Rate ◽  
Pharmaceutical Industry ◽  
Exchange Rates ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchanges ◽  
The Exchange Rate ◽  
Chemical Companies ◽  
The Empirical Analysis

The aim of the paper is to evaluate the effect of exchange rates on the stock prices of companies in the chemical industry listed on the stock exchanges in the Visegrad Four countries. The empirical analysis was performed from September 2003 to June 2016 on companies from the petrochemical and pharmaceutical industry. The effect of the exchange rate on stock prices is analyzed using Jorion’s approach on monthly data. In contrast to the selected petrochemical companies, the pharmaceutical companies did not use any hedging instruments in the tested period. The effect of the exchange rate on the stock price was proved only in the case of companies from the pharmaceutical industry. This suggests that exchange rate risk could be eliminated by using hedging instruments.

scholarly journals The Relationship between Macro-Economic Variables and Stock Exchange Prices: A Case Study in Dhaka Stock Exchange (DSE) in Bangladesh

2019 ◽  
Vol 3 (3) ◽  
pp. 122-130 ◽  
Author(s):  
Md. M. Rahman
Keyword(s):  
Exchange Rate ◽  
Causal Relationship ◽  
Money Supply ◽  
Industrial Production ◽  
Stock Prices ◽  
Trade Balance ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Macroeconomic Indicators ◽  
The Relationship

Macroeconomic indicators, such as money supply, inflation, exchange rate, trade balance, indicators of industrial production, are the basis for assessing the processes of growth and development of the country. Peculiarities of functioning of the exchange market also play an important role in the analysis of the country’s development. Disclosure of the main purpose of the study involves the study of the relationship between macroeconomic indicators and stock prices on the Dhaka stock exchange (DSE) in Bangladesh. Methodological support of the work includes statistical methods (Granger causality test and Dickie fuller test), which allow to determine the causal relationship between macroeconomic indicators and prices on the stock exchange of Bangladesh. Empirical estimates of the study showed the absence of a causal relationship between macroeconomic indicators (money supply, industrial production index, exchange rate, inflation and trade balance) and stock prices in the form of a General index of all shares on the DAX stock exchange. The obtained results indicate that the macroeconomic evaluation cannot be used to predict prices on the stock exchanges in Bangladesh. The study postulates that the results of exchange activity also do not reflect the peculiarities of macroeconomic movement in the country. The author substantiates recommendations for regulatory authorities in terms of the formation of a set of measures to ensure the claim correlation of macroeconomic indicators of the country’s development with prices on the stock market. It is stated that the results of the study will allow the government to take active measures to: overcome in the future the pressure of international trade, adjust the appropriate monitoring and fiscal policy, reduce any possible negative impact on the country’s economy in the context of its further development. Keywords: macroeconomic variables, money supply, exchange rate, inflation, prices on stock exchanges, Dhaka stock exchange, Bangladesh.

scholarly journals South Africa and United States stock prices and the Rand/Dollar exchange rate

2010 ◽  
Vol 13 (3) ◽  
pp. 362-375 ◽  
Author(s):  
Matthew Ocran
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Stock Prices ◽  
Stock Price ◽  
Price Index ◽  
Error Variance ◽  
Stock Exchanges ◽  
Impulse Response Functions ◽  
Variance Decompositions ◽  
Stock Price Index

This paper seeks to examine the dynamic causal relations between the two major financial assets, stock prices of the US and South Africa and the rand/US$ exchange rate. The study uses a mixed bag of time series approaches such as cointegration, Granger causality, impulse response functions and forecasting error variance decompositions.  The paper identifies a bi-directional causality from the Standard & Poor’s 500 stock price index to the rand/US$ exchange rate in the Granger sense. It was also found that the Standard & Poor’s stock price index accounts for a significant portion of the variations in the Johannesburg Stock Exchange’s All Share index. Thus, while causality in the Granger sense could not be established for the relationship between the price indices of the two stock exchanges it can argued that there is some relationship between them. The results of the study have implications for both business and Government.

scholarly journals Relationship Between Exchange Rate and Stock Market Volatilities in India

2021 ◽  
Vol 2 (4) ◽  
pp. 244-259
Author(s):  
Lakshmanasamy T.
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Stock Returns ◽  
Exchange Rate Volatility ◽  
Stock Exchanges ◽  
Stock Market Volatility ◽  
Daily Data ◽  
The Us ◽  
Us Dollar ◽  
The Exchange Rate

With increasing globalisation and integration of national stock exchanges, for the global investor, the portfolio risk increases not only from the local stock market volatility but also in the exchange rate risk. This paper examines the exchange rate volatility effect on volatility in stock market return from India’s perspective for the period January 2010 to December 2015, applying ARCH and GARCH estimation. The daily data of the BSE SENSEX returns, exchange rates of US dollar/rupee, British pound/rupee, Euros/rupee are used. It is estimated that the Euro/rupee exchange rate volatility has a significant positive effect on the BSE SENSEX return volatility, while the effect of the US dollar/rupee and British pound/rupee exchange rate the volatilities are insignificantly negative. The larger GARCH parameter over the ARCH term indicates that the own lagged values of the stock return cause more volatility in stock returns than the innovations. There exists a highly persistent effect of shocks to the BSE SENSEX return and the volatility effect wanes only slowly

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