Dynamic relationship between exchange rate and Malaysian stock market index / Austin Kandaring

According to Aydemir and Demirhan (2009), Since 1980s globalization, between linkages of the capital markets, continuous evacuation of capital inflow hindrances and the execution of more adaptable conversion scale instrument in created and additionally move economies, made an efficient interdependency between and inside of the stock and outside trade markets. Therefore, a study on the dynamic relationship between exchange rate and stock market index in Malaysia over the period 2005 until 2014 will give a good knowledge and insight as well as to know whether the relationship of both of the exchange rate and stock market index contribute in the economics of the country. In other side, a positive relationship between exchange rate and stock market index will enhancing and stimulate a stable financial system in long term period. However, the current results of this study suggest that the exchange rate and stock market index in Malaysia tend to negative relationship on the period under study.