Malaysia’s Exchange Rate: Political Issue And Macroeconomic Impacts Of Malaysia’s Exchange

This study attempts to investigate does macroeconomic and political issue affect the Exchange rate in Malaysia. Quarter data employed in this study from the year 1990 to 2021 which consists of 128 sample. Exchange rate was chosen as dependent variable. Independent variables used in this study are in...

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Bibliographic Details
Main Author: Thivyarani, Visionathan
Format: Thesis
Language:eng
eng
Published: 2022
Subjects:
Online Access:https://etd.uum.edu.my/11111/1/deposit%20permission.pdf
https://etd.uum.edu.my/11111/2/S826950_01.pdf
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Summary:This study attempts to investigate does macroeconomic and political issue affect the Exchange rate in Malaysia. Quarter data employed in this study from the year 1990 to 2021 which consists of 128 sample. Exchange rate was chosen as dependent variable. Independent variables used in this study are inflation rate, terms of trade, interest rate While general election was adopted as dummy variable. The data was obtained from World Development Indicator (WDI). Main technique used in this study is Regression Analysis (OLS). The result indicated positive and significant relationship between Inflation rate, terms of trade, interest rate towards exchange rate while general election Have an insignificant relationship with exchange rate. Besides that, this study also used Unit Root Test and Granger Causality Test. This study would be beneficial for several Parties which includes policy maker, central bank and investor. Recommendations Have been made for future research.