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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
© Business & Management Studies: An International Journal, 2020
Mustafa Hasan HAMAD AMEEN
MBA Student, Anadolu University
Asisst. Prof., Bilecik Şeyh Edebali University
Prof. Dr., Anadolu University
How to Cite
THE IMPACT OF EXCHANGE RATE ON STOCK MARKET INDICES
Vol 8 No 2 (2020): BUSINESS & MANAGEMENT STUDIES: AN INTERNATIONAL JOURNAL
Submitted: Apr 27, 2020
Published: Jun 25, 2020
The relationship between exchange rate and stock indices has risen many eyebrows so far. These two fundamental financial markets have a significant role in international business all around the globe. Furthermore, exchange rate is one of the most important indicators that rules in the decision-making process in all firms. In order to understand the relationship between the two variables this paper tried to investigate the relationship between exchange rate of USD/TL and BIST-100 index in Turkish stock market. The data have been collected from January 2009 to March 2020 based on monthly data. VAR model is applied in the study to exam the connections between the variables. The findings reveal that there is only a one-way causality between the variables. Nevertheless, the impulse response results show a negative impact from the shocks of each variable to another.