A study on the effects of broad money, GDP, and inflation rate towards the movement of Malaysian currency against Japanese yen / Nuril Hadithsah Kamarudin

This paper investigates the relationship between broad money (M3), gross domestic product (GDP), inflation rate, and interest rate towards the movement of Malaysian currency against Japanese Yen. Nowadays Malaysian currency is fluctuated against other currency. Local newspaper News Strait Time January 30, 2007 reported that Ringgit currently rise against the major currencies. The study focuses on changes that occur in Malaysia in year 1998-2006. The data has been collected on monthly basis. This purpose of the study is to know the effects of broad money (M3), gross domestic product (GDP), inflation rate and interest rate (BLR) towards the movement of Malaysian Ringgit against Japanese Yen. The researcher found that inflation rate and exchange rate have significant relation with exchange rate, while money supply (M3) and gross domestic product have not significant relationship with the exchange rate.