تلخیص
This study examines interrelationship in two financial variables of
Pakistan i.e. stock prices and exchange rates during the period April
2001 to March 2009. Three exchange rates i.e. NEER, REER and
Rs/US Exchange rate as well as Stock Prices of Karachi Stock
Exchange are used to explore the causal link. No long run relationship
is found in all three cases which is consistent with the previous studies.
No evidence of short run causality is observed in NEER – Stock prices
and REER – Stock Prices cases whereas unidirectional causal link
from Rs/US$ to Stock prices prevails in Pakistan which implies that
information of exchange rate market helps the investors to foresee the
trends of stock market prices.
Rafaqet Ali. (2015) Exchange Rates and Stock Prices Nexus in Pakistan, Abasyn Journal of Social Sciences, Volume-08, Issue-2.
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