scholarly journals DETERMINANTS OF EXCHANGE RATE: A REVIEW BASED STUDY

2019 ◽  
pp. 47-52
Author(s):  
Divya Nandrajog
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Secondary Data ◽  
Balance Model ◽  
Current Account Balance ◽  
Suitable Model ◽  
Macroeconomic Factors ◽  
Perfect Model ◽  
Exchange Rate Movements

Purpose: The study aims to find out the suitable model for exchange rate determination and economic variables which affect movement of exchange rates by reviewing available studies. Design/ methodology/ approach: The study is descriptive and is entirely based on secondary data. Findings: There is no one perfect model which can determine exchange rate movements. Inflation, interest rates, money supply, current account balance, oil prices are among the macroeconomic variables and currency order flow is microeconomic variable which affect exchange rates. KEY WORDS: Exchange rate, monetary model, portfolio balance model, IRPT model,PPP model, macroeconomic factors, macroeconomic & microstructure factors.

scholarly journals Pengaruh Tingkat Suku Bunga, Inflasi Dan Nilai Kurs Terhadap Harga Saham Perusahaan Perhotelan Yang Terdaftar Di Bursa Efek Indonesia Per Triwulannya Periode 2016-2018

2021 ◽  
Vol 4 (2) ◽  
pp. 871-877
Author(s):  
Rahmat Dewa Bagas Nugraha ◽  
H.M Nursito
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Quantitative Study ◽  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Ratio Analysis ◽  
The Interest Rate

This study aims to determine and analyze the factors that affect stock prices through appropriate ratio analysis. As for the ratio of interest rates, inflation and exchange rates. Researchers want to know and analyze the effect partially or simultaneously between interest rates, inflation, and exchange rates on stock prices. This research is a quantitative study using secondary data. The object of this research is hotel companies listed on the Indonesia Stock Exchange for the period 2016-2018. The sample used in this study were 3 hotel with certain characteristics. The results of research simultaneously using the F test show that there is no influence between interest rates, inflation and exchange rates on stock prices because the calculated value is smaller than the table. Partially with the t test it can be concluded that there is no influence between interest rates on stock prices because the tcount value in the interest rate variable is smaller than the t table. Likewise, the t calculation of inflation and the exchange rate is smaller than the t table, so that there is no partial effect of the two variables on stock prices. Keywords: Stock Prices, Interest Rates, Inflation and Exchange Rates

Exchange Rates and the Effectiveness of Actual and Oral Official Interventions: A Survey on Findings, Issues and Policy Implications

2010 ◽  
Vol 10 (4) ◽  
pp. 1850213 ◽  
Author(s):  
Nevin Cavusoglu
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Policy Implications ◽  
Consistent Finding ◽  
Macroeconomic Variables ◽  
Explanatory Variables ◽  
Monetary Authorities ◽  
Exchange Rate Movements ◽  
Exchange Markets

Monetary authorities of many open economies have been regularly intervening in foreign exchange markets for years to limit volatility in exchange rates and/or push exchange rates back to some desired level. Such interventions have taken the form of actual and oral official interventions. Review of studies investigating the effectiveness of interventions reveals one major issue, related to the assumption that interventions are mostly sterilized. This assumption might lead to unreliable results when changes in interest rates and interventions are both used as explanatory variables for exchange rates. One major consistent finding is that intervention has a significant but short-lasting effect on exchange rates. Studies have reached this conclusion by investigating whether intervention has been effective in turning around the exchange rate over the few days, weeks or months following intervention(s). Only a few studies have investigated and provided evidence that intervention has been effective in limiting long swings in exchange rates. Studies testing for the effectiveness of interventions specifically through the signaling channel also provide evidence on the importance of macroeconomic variables for exchange rates. The significance of official intervention and official communication for exchange rate movements combined with the importance of macroeconomic variables for exchange rates provide a role for official intervention and parity announcement to influence exchange rate movements and limit the magnitude of exchange rate swings.

scholarly journals Financial Market Integration in Pakistan: Evidence Using Post-1999 Data

2006 ◽  
Vol 45 (4II) ◽  
pp. 1041-1053
Author(s):  
Ahmed M. Khalid ◽  
Gulasekaran Rajaguru
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Stock Prices ◽  
Market Integration ◽  
Multinational Firms ◽  
Academic Research ◽  
Balance Model ◽  
Goods Market ◽  
Pass Through

The recent wave of financial sector reforms and internationalisation in emerging markets has increased perceived interlinkages within various sectors of national financial markets. For example, the existence of a strong linkage between stock prices and exchange rates is a popular topic in academic research. Similarly, changes in stock prices and exchange rates are expected to influence movements in interest rates. A number of hypotheses suggest such a causal relationship. For instance, using a goods market approach, any changes in the value of currency would affect the competitiveness of multinational firms and hence influence stock prices [Dornbusch and Fischer (1980)]. Similarly, the hypotheses of ‘exchange rate pass-through’ and ‘interest rate pass-through’ suggest that changes in exchange rates and/or interest rates could affect stock prices. The portfolio balance model suggests that fluctuations in stock prices influence exchange rate changes.

scholarly journals PENGARUH INFLASI, SUKU BUNGA DAN NILAI TUKAR TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA PADA PERIODE 2013-2016

2019 ◽  
pp. 101-113
Author(s):  
Hotmauli Sitanggang ◽  
Kornel Munthe
Keyword(s):  
Exchange Rate ◽  
Data Analysis ◽  
Exchange Rates ◽  
Interest Rates ◽  
Stock Returns ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Testing Hypotheses ◽  
Analysis Technique

This study aims to analyze and determine the effect of inflation, interest rates and exchange rates on stock returns on manufacturing companies that go public on the Indonesia Stock Exchange in the 2013-2014 period. The population in this study were 149 companies that went public on the Indonesia Stock Exchange in 2013-2016. By using the Slovin method, a sample of 60 companies was obtained. This type of data is secondary data obtained by documentation techniques. The data analysis technique used is multiple linear regression by testing hypotheses using F and t. The results showed that partially inflation and interest rates had a negative and insignificant effect on stock returns while the rupiah exchange rate had a positive and significant effect on stock returns. Simultaneously that the variables of inflation, interest rates and exchange rates have a significant effect on stock returns on manufacturing companies that go public on the Indonesia Stock Exchange. The amount of variation in inflation, interest rates and exchange rates is only able to explain variations in stock returns by 4.4 percent, while the remaining 95.6 percent is explained by other variables outside of this research variable.

scholarly journals ANALISIS INTERDEPENDENSI NILAI TUKAR, INFLASI, PRODUK DOMESTIK BRUTO, SUKU BUNGA DAN NERACA TRANSAKSI BERJALAN DI INDONESIA

2020 ◽  
Vol 1 (3) ◽  
Author(s):  
Uline Afriany Prasetia Simarmata
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Current Account ◽  
Impulse Response Function ◽  
Secondary Data ◽  
Current Account Balance ◽  
Vector Autoregressive ◽  
Random Shock ◽  
The Current Account

Depreciation of the rupiah prompted Bank Indonesia raised SBI to strengthen the rupiah, inflation has a downward trend when the appreciation of the rupiah, and the movement of the exchange rate also change the position of the current account of Indonesia. This study aimed to determine the role and effects of changes in exchange rates, inflation, gross domestic product, interest rates and the current account balance for each variable. Data obtained from secondary data is exchange rate, inflation, GDP, interest rates and the current account data from 2000:1 up to 2010:4. The model used in this study is the econometric model by the method of Vector Autoregressive (VAR) that in their analysis the instrument has Impulse Response Function (IRF) and Variance Decomposition (VD). The results of this study concluded that (1) All variable giving each other random shock to other variables and response by each variable so as to achieve long-term equilibrium. This is shown on the estimation IRF test on each variable; (2) All variables are mutually contribute to other variables. It is shown by the results of estimation VD test, in which each variable contributed to other variables.

scholarly journals The effect of interest rates, exchange rates and capital structure on banking profitability of BUMN and Private Go Public in Indonesia

2021 ◽  
Vol 10 (3) ◽  
pp. 338-351
Author(s):  
Debby Wulandari ◽  
Agus Harjito
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Capital Structure ◽  
Exchange Rates ◽  
Interest Rates ◽  
Quantitative Research ◽  
Secondary Data ◽  
Sampling Technique ◽  
Analysis Technique ◽  
The Interest Rate

This study aims to examine and analyze the influence of interest rates, exchange rates and capital structure on profitability in state-owned and private banking go public in Indonesia. This research is quantitative research based on the study of empirical rational principles. Collecting data using secondary data with purposive sampling technique, the sample consists of Commercial Banks Business Group (BUKU IV) with core capital > Rp 30 trillion. The data analysis technique used panel data regression analysis using EVIEWS version 11 software. The results showed that the interest rate had a positive and significant effect on banking profitability; Exchange Rate has a negative and significant effect on Banking Profitability; Capital Structure has a positive and significant effect on Banking Profitability; Interest Rate, Exchange Rate, and Capital Structure simultaneously have a positive and significant effect on Banking Profitability

scholarly journals ANALISIS HUBUNGAN KAUSALITAS ANTARA TINGKAT SUKU BUNGA,TINGKAT INFLASI, DAN HARGA SAHAM DENGAN KURS RUPIAH TERHADAP DOLAR AMERIKA SERIKAT DI INDONESIA

2019 ◽  
Vol 1 (2) ◽  
pp. 571
Author(s):  
Resti Junia Sari ◽  
Sri Ulfa Sentosa
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Causal Relationship ◽  
Stock Prices ◽  
Causal Relation ◽  
United States Dollar ◽  
Exchange Rate Movements ◽  
The Exchange Rate

The aim of this study is to see and analyze the relationship of causality between:1. The interest rate with IDR (Indonesian Rupiah) towards USD (United States Dollar). (2) the inflation rate with IDR towards USD (3) The stock prices with IDR towards UDS.This study was conducted by using qualitative with descriptive and associative, where the data was used secondary data in the form of time series from the year 2006, first quarter to the year 2016 first quarter that was obtained from the relevant institutions. To analyze the data, this study have used vector autoregressive (VAR) in order to see the relation between casuallity and variable.The finding has shown that the exchange rate and interest rate do not have a causal relationship rather than a unidirectional correlation, it means thatthe exchange rates ,both it is high or low, have no influence to interest rates  however the interest rates will give an effect to exchange rate movements. Moreover, the exchange rates as well as the inflation do not have a causal relationship even one-way relationship, thus the changes in inflation have no effects to exchange rate movements and vice versa. While the exchange rates along with stock prices do not have a causal relation but stock prices have a one-way connection with the exchange rate. By this, the exchange rate movements do not have a relation with stock price movements but movements in stock prices have a relation to exchange rate movements.

scholarly journals PENGARUH VARIABEL MAKRO EKONOMI TERHADAP HARGA SAHAM DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

2020 ◽  
pp. 247259
Author(s):  
Kornel Munthe ◽  
Caisar J Harefa
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Exchange Rates ◽  
Interest Rates ◽  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Sample ◽  
Domestic Product ◽  
Manufacturing Companies

The purpose of this study is to influence the effect of exchange rates, interest rates, inflation and Gross Domestic Product on stock prices with profitability as an intervinig variable in manufacturing companies on the Indonesia Stock Exchange. This type of research is explanatory. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange as many as 159 companies with a total sample of 61 companies. The type of data used is secondary data collected by documentation techniques. The results showed that the exchange rate had a negative and significant effect on profitability, SBI interest rates, inflation and Gross Domestic Product partially had a positive and significant effect on profitability, exchange rate variables, SBI interest rates, inflation and Gross Domestic Product simultaneously had a significant effect on profitability, exchange rates and SBI interest rates partially have a negative and significant effect on stock prices, inflation, and Gross Domestic Product and Return on Assets have a positive and significant effect on stock prices, and exchange rate variables, SBI interest rates, inflation, and Domestic Product Gross and profitability simultaneously have an effect and are significant on stock prices.

scholarly journals PENGARUH VARIABEL DOMESTIK DAN GLOBAL TERHADAP NILAI TUKAR RUPIAH

2019 ◽  
Vol 1 (2) ◽  
pp. 341
Author(s):  
Pamela Dwi Hapsari ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Secondary Data ◽  
American Interest ◽  
Library Studies ◽  
Us Dollar ◽  
Positive Effect

This study aims to find out how the influence of domestic and global variables on changes in the exchange rate of the rupiah per US dollar. The data used are secondary data in the form of time series from 2008: Q1 to 2018: Q3, with documentation data collection techniques and library studies obtained from relevant institutions and agencies. The variables used are Exchange Rates of Rp/USD (Y), Indonesian Economic Growth (X1), Indonesian Interest Rates (X2), American Economic Growth (X3) and American Interest Rates (X4). The research methods used are: (1) Ordinary Last Square (OLS), (2) Classical Assumption Test. The results of the study show that (1) Indonesian Economic Growth has a negative and significant effect on the rupiah exchange rate per US dollar. (2) Indonesian interest rates do not have a significant influence on the rupiah exchange rate per US dollar. (3) American Economic Growth has a positive and significant effect on the rupiah exchange rate per US dollar. (4) American interest rates have a positive effect on the rupiah exchange rate per US dollar.

Pengaruh Faktor Fundamental, Risiko Sistematis Dan Ekonomi Makro Terhadap Return Saham Syariah Yang Tergabung Di Jakarta Islamic Index (JII) Pada Periode 2010 – 2014

2017 ◽  
Vol 24 (1) ◽  
pp. 54-70
Author(s):  
Hasanah Setyowati ◽  
Riyanti Ningsih
Keyword(s):  
Exchange Rate ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Secondary Data ◽  
Analysis Model ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Equity Ratio ◽  
Regression Techniques ◽  
The Exchange Rate

This study aimed to obtain empirical evidence on the influence of fundamental factors, systematic risk and macroeconomics on the returns Islamic stock of companies incorporated in the Jakarta Islamic Index in 2010-2014. The variables used were the fundamental factors that are proxied by Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER); Systematic risk is proxied by Beta Shares; macroeconomic factors is proxied by the inflation rate and the exchange rate. The samples of this study are the enterprises incorporated in Jakarta Islamic Index (JII) at the Indonesian Stock Exchange. The sampling method was using purposive sampling. There were 12 samples of Islamic stocks that meet the criteria to be used as samples. The analysis model used is multiple linear regression techniques and the type of data used is secondary data. The study found that all variables, which are Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER), Beta stock, inflation and the exchange rate do not significantly affect the return of sharia stock either simultaneously or partially.

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