The relationship of interest rate, inflation rate and exchange rate towards stock market in Malaysia

Syed Zainuddin, Siti Syafiqah (2015) The relationship of interest rate, inflation rate and exchange rate towards stock market in Malaysia. [Student Project] (Unpublished)
Abstract

The aim of this study is to investigate the relationship between Interest Rate, Inflation Rate and Exchange Rate to the FTSE Bursa Malaysia KLCI Index. These studies used Simple Linear Regression and Multiple Linear Regression in order to find the relationship among the variables. The monthly closing price of stock indices, interest rate, inflation rate and exchange rate are collected from 29th January 2010 until 30th December 2015. From the result, it reveals that these entire variables have a significant positive and negative relationship towards FTSE Bursa Malaysia KLCI Large Capital Index. It means that there are interdependencies among these variables. These results further our understanding of the relationship between the variables and should be useful for regulator, investor and speculator.

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