Factors affecting exchange rate in Malaysia / Hasrieda Ab Rahman

This research paper examines the factors affecting exchange rate in Malaysia by using gross domestic product, import, export, inflation and foreign direct investment as selected variables. As for 38 number of observation which is from 1980 to 2017, this research applied time series analysis method and Ordinary Least Square (OLS) analyze the data and determine of the affecting of selective variables towards exchange rate. The result from this research indicates that GDP (MYR), import, inflation are positively significant with the exchange rate. Meanwhile, for GDP (USD) and export are negatively significant with the exchange rate. For FDI, the result shows that there is negatively insignificant between FDI and the exchange rate.