Factors affecting exchange rates movement in Malaysia / Ili Nadhrah Ahmad Zahari

Exchange rate has an important role in the country's level of trade; the country import and export are affected by the changes of exchange rate. An appreciation of home country currency will lead the price of export products to be more expensive, and import products to be cheaper. Meanwhile, a depreciation of home currency will lead the price of import products to be more expensive and export products to be cheaper. The main objective of this study is to investigate the national income, inflation rates, interest rates, money supply, and gold price impacts on exchange rate movements in Malaysia. The independent variable in this study is the national income, inflation rates, interest rates, money supply, and gold price while the dependent variable is fee exchange rates movement in Malaysia. The secondary quantitative data (time series) monthly data collected for periods of 8 years (20052013) as number of observations. This study used secondary time series data and single regression model represented by pooled ordinary least square method to examine the national income, inflation rates, interest rates, money supply, and gold price impacts on exchange rates movement in Malaysia.