An impact of bank rate and inflation rate on volatility of foreign exchange rate in India

2021 ◽  
Vol 8 (1/2) ◽  
pp. 54
Author(s):  
Fatemabibi Abubaker Salehbhai ◽  
Purnima Pradipkumar Jariwala
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Inflation Rate ◽  
Foreign Exchange Rate ◽  
Bank Rate

scholarly journals Impact of Foreign Exchange Rate and Inflation Rate on the Economic Growth of India

2019 ◽  
Vol 8 (4) ◽  
pp. 4333-4335
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Inflation Rate ◽  
Linear Regression Analysis ◽  
Foreign Exchange Rate ◽  
Gdp Growth ◽  
Economic Progress ◽  
Gdp Growth Rate ◽  
The Impact

This paper tries to investigate the impact of foreign exchange rate and inflation rate on the economic progress of India. In this study the economic progress has been measured by annual GDP ( Gross Domestic Product ) growth in India. Correlation analysis and multiple regression model have been designed to explore the relationship among the mentioned three variables. The annual GDP growth of India has been considered as the dependent variable and the other two macroeconomic variables ( Foreign exchange rate and inflation rate ) have been considered as the independent variables. Secondary sources of data have been gathered to arrive at a logical conclusion. The results show a positive correlation between GDP growth rate and the foreign exchange rate and a negative correlation between the GDP growth rate and the inflation rate. Results from the linear regression analysis show that inflation rate has a strong influence or impact on the GDP growth rate than the foreign exchange rate. It is expected that the present study will help the policy makers and the researchers to understand the impact of foreign exchange rate and inflation rate on the GDP growth in India

PENGARUH TINGKAT SUKU BUNGA DEPOSITO, KURS VALUTA ASING DAN TINGKAT INFLASI TERHADAP VOLUME PERDAGANGAN SAHAM PADA BURSA EFEK INDONESIA

2021 ◽  
pp. 339-352
Author(s):  
Susi E. Situmeang ◽  
Kornel Munthe ◽  
Antonius M Purba
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Foreign Exchange ◽  
Trading Volume ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Foreign Exchange Rate ◽  
Survey Method ◽  
Manufacturing Companies ◽  
Stock Trading

The purpose of this study was to determine the effect of deposit interest rates, foreign exchange rates and inflation rates on the volume of stock trading on the Indonesia Stock Exchange. This study applies a survey method to 54 Manufacturing companies that have been listed on the Indonesia Stock Exchange for the 2017-2019 period. The sampling technique used the proportional random sampling method. The research data were analyzed using multiple linear regression analysis. The results showed that the variable deposit interest rate, foreign exchange rate, inflation rate simultaneously had a significant effect on stock trading volume and the variable deposit interest rate, foreign exchange rate, inflation rate partially had a positive and significant effect on the volume of stock trading in manufacturing companies in Indonesia. Indonesia stock exchange. The coefficient of determination (R^2) is 50.7 percent, this shows that variations in the variable deposit interest rate, foreign exchange rate, inflation rate can explain the variation in stock trading volume 50.7%.

scholarly journals The management of inflation rate, interest rate and foreign exchange rate risks: A business executive outlook

2007 ◽  
Vol 4 (3) ◽  
pp. 64-70
Author(s):  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
South African ◽  
Foreign Exchange ◽  
Financial Risk ◽  
Inflation Rate ◽  
Foreign Exchange Rate ◽  
Financial Risk Management ◽  
Business Executives ◽  
Risk Insurance

Inflation rate, interest rate and foreign exchange rate risks are relevant to enterprise stakeholders because they impact in varying degrees on the financial performance of enterprises. Business executives are expected to take reasonable steps for managing these risks and to rely on sound and innovative financial risk management solutions to meet the expectations of stakeholders in their enterprises. This paper aims at improving financial risk management practices by applying insurance principles to the management of inflation rate, interest rate and foreign exchange rate risks. To achieve this objective, the research paper focuses on the features of finite risk insurance and the perceived importance of these features when South African business executives consider strategies to manage the above risks. Finite risk insurance is classified as a form of alternative risk transfer (commonly referred to as “ART”) that relates to the point where insurance, banking and/or the capital market converge in an attempt to efficiently provide enterprises with sufficient financial capacity for protection against a variety of risks. The features of finite risk insurance are highlighted and the views of business executives regarding the importance of these features for the management of inflation rate, interest rate and foreign exchange rate risks are disclosed and analysed. The paper closes with recommendations to providers of financial services based on the needs of South African industrial companies to manage the above risks.

scholarly journals The Effect of Foreign Exchange Rate, Inflation Rate and Market Return on Return of Bank Perseros’ Stock

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Doddi Prastuti ◽  
Pristina Hermastuti Setianingrum
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Financial Market ◽  
Inflation Rate ◽  
Foreign Exchange Rate ◽  
Market Condition ◽  
P Value ◽  
Political Condition ◽  
Market Return ◽  
Independent Variable

Stock return is affected by many factors, among others are: macro economics environments, political condition, fundamental corporate performance, financial market condition, etc. The purpose of this study is to determine the effect of  foreign exchange rate, inflation rate and  market return on  bank perseros’ stock (government owned banks).  We take the case of bank perseros’ because those banks are among the biggest banks in Indonesia in terms of capital. Our observation period starts from January 2010 to September 2014. This period of observation is chosen because it was after the crisis of 2008 and therefore during the time the effect of the crisis on Indonesia’s financial market was mild. Due to the IPO of Bank Tabungan Negara was in the late year of 2009, therefore our period of research run from January 2010 until September 2014.Our justification to use the foreign exchange rate, inflation rate and market return as independent variable is because the foreign exchange rate, inflation rate are considered to be macro economics variable, and market return is financial market variable. The data used in this study is monthly secondary data of stock price data of bank perseros’, the foreign exchange rate, inflation rate and market return. In this study, the independent variables used are the foreign exchange rate (X1), inflation rate (X2) and market return (X3), while the dependent variable used is return of  bank perseros’ stock (Y). Result of study shows that the regression function is: Y = - 0.036 + 0.0000033 X1 + 0.046 X2 + 1.531 X3. The test of hypothesis in this study shows that simultaneously the foreign exchange rate (X1), inflation rate (X2) and market return (X3) have significant effect on return of bank perseros’ stock (Y). This is shown by sig. F = 0.000 < 5% (α). Partially the effect of foreign exchange rate and inflation rate on return of bank perseros’ stock are not significant, these are shown by p-value of X1 = 0.468 and p-value of X2 = 0.89 which are greater than α of 5%.  Whereas the market return has significant partial effect on return of bank perseros’ stock, the p-value is 0.000. The effect of independent variable on return stock simultaneously is 53.1%. Whereas partial effect of each X1, X2 and X3 is 0.24%, 0.0081% and 52.27% The conclusion of the study is: macro economics and financial markets simultaneously have effect on return of bank perseros’ stock. However the financial market variable has much greater effect compare to the other variables.

scholarly journals ANALISIS PENGARUH SUKU BUNGA, INFLASI, KURS MATA UANG, IHSG DAN DANA KELOLAAN TERHADAP IMBAL HASIL REKSADANA SAHAM

2009 ◽  
Vol 5 (2) ◽  
Author(s):  
* Sujoko
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Foreign Exchange ◽  
Mutual Fund ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Foreign Exchange Rate ◽  
P Value ◽  
Purposive Sampling ◽  
Key Word

The main objective of the study is to examinal the effect of interest rate, inflation, foreign exchange rate, IHSG and management of fund on return mutual fund in Indonesia Stock Exchange. The technique sampling is purposive sampling. As much as twenty mutual fund as sample for this research .The result of the study show that variable of SBI is not significant effect on return mutual fund, with p value 0.0764.Variable of Inflation rate is significant effect on return mutual fund with p value 0.0018. Variable of foreign exchange rate is significant effect on return mutual fund on return mutual fund with p value 0.0000.Variable of IHSG is significant effect on return mutual fund with p value 0.0027. Variable of management of fund is not significant effect on return mutual fund. Key Word: Mutual Fund, Inflation Rate, Foreign Exchange Rate.

An Empirical Analysis of Foreign Exchange Exposure of CNX 100 Companies

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 1-9 ◽  
Author(s):  
Sriram Mahadevan
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Foreign Exchange ◽  
Foreign Exchange Rate ◽  
Future Research ◽  
Export Ratio ◽  
Exchange Rate Exposure ◽  
Ratio Size ◽  
Foreign Exchange Exposure ◽  
Exchange Rate Changes

The present study has empirically examined the level of foreign exchange exposure and its determinants of CNX 100 companies. For the purpose of study, the relationship between exchange rate changes and stock returns for a sample of 82 companies was determined for the period April 2011-March 2016. The study finds that 49% of the sample companies had significant positive foreign exchange rate exposure and the found that the companies could be exporters or net importers. To explore factors determining foreign exchange rate exposure, variables such as export ratio, import ratio, size of a company, hedging activities were regressed against the exchange exposure and the study found that none of the factors was influencing the exchange rate exposure. The study concludes that the reasons for insignificant influence of the variables could be the natural hedging practices of companies, offsetting of exports and imports and heterogeneous of the sample size. The study offers few directions for future research in this area.

Interest Rate, Foreign Exchange Rate, and Stock Market Development in Nigeria

2018 ◽  
Vol 9 (3) ◽  
pp. 247-253 ◽  
Author(s):  
Edward Adedoyin Adebowale ◽  
Akindele Iyiola Akosile
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Foreign Exchange ◽  
The United States ◽  
Ordinary Least Squares ◽  
Foreign Exchange Rate ◽  
Market Development ◽  
National Bureau ◽  
Stock Market Development

This research investigated the effect of interest rate and foreign exchange rate on stock market development in Nigeria. This research was centered on two research problems. First, it was whether interest rate had a significant effect on stock market development in Nigeria. Second, it was whether foreign exchange rate had a significant impact on stock market development in Nigeria. The scope of the research covered the period from 1981 to 2017. Data for this period were chosen because it covered pre and post-liberalization periods of Nigerian financial system. This research made use of ex post facto research design. Secondary data were sourced from Nigerian Stock Exchange reports, Central Bank of Nigeria statistical bulletins, and National Bureau of Statistics publications. Data were collected on Stock Market Capitalization (SMC), Prime Lending Rate (PLR) and Real Exchange Rate (RER) (Nigerian Naira in relation to American Dollars of the United States). Data analysis was carried out with Ordinary Least Squares (OLS) and Cochrane-Orcutt Iterative techniques. The findings reveal that interest rate has a significant negative effect, and foreign exchange rate has a significant positive effect on Nigerian stock market development during the period covered. It is suggested that monetary authorities should strive to formulate policies that will make interest and foreign exchange rates stable, competitive, and at a level that will stimulate the investment of funds in the stock market.

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