this paper empirically investigates the exchange rate effects of iranian rial against dollar (rial vs.us) on stock prices in iran. the sample period for the study has been taken from march 20, 2004 to march 20, 2010 using daily nominal exchange rate of rial /us and daily closing values of tehran stock exchange. generalized autoregressive conditional heteroskedasticity (garch) model has been use...

Exchange rates differ considerably with respect to exchange rate volatility, while they are very similar with respect to the macroeconomic fundamentals — the well known exchange rate disconnect puzzle. The microeconomic structure of foreign exchange markets, especially the existence of noise traders, may be responsible for the excessive volatility in flexible exchange rate regimes. The entry of...

financial markets are one of the most crucial markets in every country. stock exchange market and exchange market are the most sensitive sectors of financial market. these markets are affected by fluctuations and business cycles in the economy and they reflect economic changes to the economy. on the other hand, disturbance in one or both markets cause concerns among policy makers. dynamic inter...