Cover Image

Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir

The depreciation and volatility of the Ringgit Malaysia exchange rate are one of the vast macroeconomic disadvantages that have occurred in the Malaysian economy in the recent past. Exchange rate in Malaysia drastically depreciate on 1997 and it is continued to depreciate since 2012 until 2016. The...

Full description

Saved in:
Bibliographic Details
Main Author: Abdu Khadir, Nurul Najihah
Format: Thesis
Language:English
Published: 2019
Subjects:
Macroeconomics
Online Access:https://ir.uitm.edu.my/id/eprint/93747/1/93747.pdf
https://ir.uitm.edu.my/id/eprint/93747/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uitm.ir.93747
record_format eprints
spelling my.uitm.ir.937472024-04-17T03:40:28Z https://ir.uitm.edu.my/id/eprint/93747/ Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir Abdu Khadir, Nurul Najihah Macroeconomics The depreciation and volatility of the Ringgit Malaysia exchange rate are one of the vast macroeconomic disadvantages that have occurred in the Malaysian economy in the recent past. Exchange rate in Malaysia drastically depreciate on 1997 and it is continued to depreciate since 2012 until 2016. The exchange rate volatility can influence an economic growth in each country and it also consider as the most important factors in determine the economics health of one country. Thus, the objectives are try to determine if there is relationship between exchange rate with inflation, interest rate, export, gross domestic product and foreign direct investment as well as to measure the most significant factor that affecting the exchange rate volatility in Malaysia. Annual data from 1970 until 2017 was analysed using Ordinary Least Square method (OLS), discloses that foreign direct investment is negative and highly significant. In parallel, other variable such as gross domestic product follows the result which is has a negative relationship with exchange rate and significant at 1 percent significant level. In contrast, export has positive relationship towards exchange rate. Meanwhile, the results for other two variables such inflation and interest rate shown a significant and negative relationship with exchange rate in Malaysia. Hence, the federal government should exercise control over feasible macroeconomic factors that directly affect exchange rate fluctuations while the central monetary authority establishes policies that minimize the magnitude of exchange rate volatility. 2019 Thesis NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/93747/1/93747.pdf Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir. (2019) Degree thesis, thesis, Universiti Teknologi MARA, Terengganu.
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Macroeconomics
spellingShingle Macroeconomics
Abdu Khadir, Nurul Najihah
Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir
description The depreciation and volatility of the Ringgit Malaysia exchange rate are one of the vast macroeconomic disadvantages that have occurred in the Malaysian economy in the recent past. Exchange rate in Malaysia drastically depreciate on 1997 and it is continued to depreciate since 2012 until 2016. The exchange rate volatility can influence an economic growth in each country and it also consider as the most important factors in determine the economics health of one country. Thus, the objectives are try to determine if there is relationship between exchange rate with inflation, interest rate, export, gross domestic product and foreign direct investment as well as to measure the most significant factor that affecting the exchange rate volatility in Malaysia. Annual data from 1970 until 2017 was analysed using Ordinary Least Square method (OLS), discloses that foreign direct investment is negative and highly significant. In parallel, other variable such as gross domestic product follows the result which is has a negative relationship with exchange rate and significant at 1 percent significant level. In contrast, export has positive relationship towards exchange rate. Meanwhile, the results for other two variables such inflation and interest rate shown a significant and negative relationship with exchange rate in Malaysia. Hence, the federal government should exercise control over feasible macroeconomic factors that directly affect exchange rate fluctuations while the central monetary authority establishes policies that minimize the magnitude of exchange rate volatility.
format Thesis
author Abdu Khadir, Nurul Najihah
author_facet Abdu Khadir, Nurul Najihah
author_sort Abdu Khadir, Nurul Najihah
title Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir
title_short Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir
title_full Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir
title_fullStr Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir
title_full_unstemmed Macroeconomic factors that affect exchange rate volatility in Malaysia / Nurul Najihah Abdu Khadir
title_sort macroeconomic factors that affect exchange rate volatility in malaysia / nurul najihah abdu khadir
publishDate 2019
url https://ir.uitm.edu.my/id/eprint/93747/1/93747.pdf
https://ir.uitm.edu.my/id/eprint/93747/
_version_ 1797925126499467264
score 13.211869

Similar Items