güler, sevinç dokuz eylül üniversitesi - iktisadi ve idari bilimler fakültesi - işletme bölümü, turkey , özçalik, melih manisa celal bayar üniversitesi - iktisadi ve idari bilimler fakültesi - iktisat bölümü, turkey

THE ASSOCIATIONS BETWEEN STOCK RETURNS, INTEREST RATE AND EXCHANGE RATE OF DOLLAR: A STUDY ON TURKEY’S BIST

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In capital markets, actors make transactions by taking into account a plethora of different factors. While some of these variables are predictable and quantifiable, some of them might be completely behavioral. Dollar index is an index of various currencies that have closely affected the dollar in recent years, and this index affects the macroeconomic variables of many countries. Interest rate is yet another significiant indicator crucial for market makers and investors. Exchange rate is defined as the price of one country’s currency in relation to another, and it is one of the most important indicators affecting the international factor movements. A critical economic indicator within an increasingly more global and risky financial ecosystem is the exchange rate. In this context, the purpose of this study is to investigate the relationship between BIST 100, CBT average interest rate, dollar index and dollar/TL exchange rate spanning the period between December 2016 and September 2018. For this purpose, this study uses time series data, and tests for stationarity, applies Vector Auto Regression analysis and Granger causality test. The findings show that all variables are affected by each other.

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BIST 100 Index , Dollar Index , Granger Causality Analysis

Celal Bayar University Journal Of Social Sciences

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