The macroeconomic determinants of exchange rate volatility in Malaysia / Mohd Zulakmal Mohd Nor

This study is done to investigate and analyze the macroeconomic determinants of
exchange rate volatility in Malaysia. The financial data used in this study is to determine
what macroeconomic factors affect the exchange rates going in an upward or downward
direction (volatile). The variables considered in this study are national income, inflation,
government debt, interest rate and money supply. The sample of this study comprises of
56 quarters of both the dependant and independent variables on a yearly basis over a 14
year period from 2001-2014. The data can be obtained from Data Stream, EUI Database
and World Data Bank. Interactive software package, E-views, will be used for regression
analyzing the data that have been collected. The variables are basically from previous
research papers that are related to the determinants of foreign exchange. The results of
this research would determine which financial data variables have a significant effect
towards exchange rate volatility in Malaysia.