An Empirical Analysis to Assess the Impact of Inconsistency of Exchange Rate on Share Market: A Case Study of London Stock ExchangeHossain SA*
Teaching Assistant, London college of business management and Information technology, UK
- *Corresponding Author:
- Hossain SA
London college of business management and Information technology
E-mail: [email protected]
Received September 29, 2015; Accepted October 26, 2015; Published November 15, 2015
Citation:Hossain SA (2015) An Empirical Analysis to Assess the Impact of Inconsistency of Exchange Rate on Share Market: A Case Study of London Stock Exchange. J Bus Fin Aff 4:154. doi:10.4172/2167-0234.1000154
Copyright: © 2015 Hossain SA. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study evaluated the impacts of inconstancy of exchange rate on the London Stock Exchange (LSE). An assessment of writing on inconstancy of exchange rate and stock exchanges was led coming about into detail of an observational model. The Regression model was utilized as a part of making the relationship between conversion standard instability and securities exchange execution. The study utilized month to month United Kingdom information for the period August, 2004 - July, 2014. The information recurrence chose guaranteed a sufficient number of perceptions. An extremely feeble relationship between money instability and the share trading system was affirmed. The exploration finding is upheld by past studies. US premium rates were found to have a positive effect on Market capitalisation. Also GBP volatility makes greater impact on the money supply.
This study prescribed that, since the United Kingdom securities exchange is not by any means presented to the negative impacts of inconstancy of exchange rate, government can utilize conversion scale as an arrangement device to pull in outside portfolio speculation. The feeble relationship between inconstancy of exchange rate and money markets proposes that the LSE could be advertised as a safe business for remote speculators. Nonetheless, financial specialists, investors and portfolio directors still need to be vigilant concerning the overflows from the remote swapping scale into money markets. Despite the fact that there is a powerless relationship between GBP inconstancy and stocks in United Kingdom, this does not so much imply that financial specialists and portfolio administrators require not screen the improvements between these two variables.