The relationship between gross domestic product, inflation rate and interest rate towards Malaysia exchange rate

In this paper investigated the relationship between Gross Domestic Product, Inflation Rate and Interest Rate towards Malaysia Exchange Rate. For that purpose, the data were taken at Thomson Reuters DataStream and used in quarterly time series from 2005(Q2) until 2015(Q2) to analyse the significant of relationship between Malaysia Exchange Rate with Gross Domestic Product, Inflation Rate and Interest Rate. The methods that used to gain the result is by using the two models of Linear Regression which is Single Linear Regression and Multiple Linear Regression. The outcome displays that there are negative significant relationship between Gross Domestic Product and Inflation Rate towards Malaysia Exchange Rate but Interest Rate give positive significant relationship. In addition, the variables that give most influence to Malaysia Exchange Rate are Interest Rate and followed by Gross Domestic Product and Inflation Rate which give less influence towards Malaysia Exchange Rate. The collected data was analysed by using Eviews7 software and Microsoft Excel as well as statistical methods of unit root tests. These findings were then interpreted and explained based on the findings, some suggestions were proposed in order to develop the findings related from the model to other researchers. The research questions and objectives of this study have been achieved.