Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid

This research will examine the factors of carry trade between Malaysia and USA. It will be look on the Foreign Exchange Market (FOREX), and the interest rate differential from the failure of Uncovered Interest Parity (UIP) to hold. Carry trade is a trading strategy that investor borrows funds in a l...

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Main Author:	Morshid, Nurul Amirah
Format:	Thesis
Language:	English
Published:	2018
Subjects:	International trade Interest rates Bonds
Online Access:	https://ir.uitm.edu.my/id/eprint/61589/1/61589.pdf
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id	my-uitm-ir.61589
record_format	uketd_dc
spelling	my-uitm-ir.615892022-07-18T00:48:06Z Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid 2018-06 Morshid, Nurul Amirah International trade Interest rates Foreign exchange. Foreign exchange rates Stock exchanges. Insider trading in securities Bonds This research will examine the factors of carry trade between Malaysia and USA. It will be look on the Foreign Exchange Market (FOREX), and the interest rate differential from the failure of Uncovered Interest Parity (UIP) to hold. Carry trade is a trading strategy that investor borrows funds in a low interest rate currency and lends those fund in a high interest rate currency (Burnside, 2012). Besides that, a country that all of sudden increments its interest rate may be anticipated to draw in outside capital in the short-run, which in a frictionless world, would lead to prompt appreciation of the money. Other than that, by doing this research it can increase the knowledge and have a clear view about the relationship each of variables. It is identified and gives a result from data that had been collected by using method of research and the data is using monthly from year 2011 to 2017. UIP predicts that the currency of a country with a high interest rate is expected to depreciate so that the profit is the same as from investing in a low interest rate bond. In other words, there is positive correlation between interest rate differentials and the currency appreciation (Favilukis, 2015). 2018-06 Thesis https://ir.uitm.edu.my/id/eprint/61589/ https://ir.uitm.edu.my/id/eprint/61589/1/61589.pdf text en public degree UiTM Cawangan Johor Faculty of Business Management Ramli, Ahmad Razi (Dr.) Abd Rahman, Nor Hadaliza
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Ramli, Ahmad Razi (Dr.) Abd Rahman, Nor Hadaliza
topic	International trade Interest rates International trade International trade Bonds
spellingShingle	International trade Interest rates International trade International trade Bonds Morshid, Nurul Amirah Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid
description	This research will examine the factors of carry trade between Malaysia and USA. It will be look on the Foreign Exchange Market (FOREX), and the interest rate differential from the failure of Uncovered Interest Parity (UIP) to hold. Carry trade is a trading strategy that investor borrows funds in a low interest rate currency and lends those fund in a high interest rate currency (Burnside, 2012). Besides that, a country that all of sudden increments its interest rate may be anticipated to draw in outside capital in the short-run, which in a frictionless world, would lead to prompt appreciation of the money. Other than that, by doing this research it can increase the knowledge and have a clear view about the relationship each of variables. It is identified and gives a result from data that had been collected by using method of research and the data is using monthly from year 2011 to 2017. UIP predicts that the currency of a country with a high interest rate is expected to depreciate so that the profit is the same as from investing in a low interest rate bond. In other words, there is positive correlation between interest rate differentials and the currency appreciation (Favilukis, 2015).
format	Thesis
qualification_level	Bachelor degree
author	Morshid, Nurul Amirah
author_facet	Morshid, Nurul Amirah
author_sort	Morshid, Nurul Amirah
title	Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid
title_short	Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid
title_full	Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid
title_fullStr	Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid
title_full_unstemmed	Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid
title_sort	factors of carry trade between malaysia and usa / nurul amirah morshid
granting_institution	UiTM Cawangan Johor
granting_department	Faculty of Business Management
publishDate	2018
url	https://ir.uitm.edu.my/id/eprint/61589/1/61589.pdf
_version_	1783735236141514752

Factors of carry trade between Malaysia and USA / Nurul Amirah Morshid

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