The impact of exchange rate misalignment on portfolio inflows in Malaysia

The primary reason why exchange rate misalignment is of interest to economists lie with the notional premise that risks emanating from overvaluation may undermine the competitiveness of Malaysia as a destination for portfolio investment inflows. On the other hand, undervaluation should make her a m...

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Main Authors:	Mohd Sidek, Noor Zahirah, Yusoff, Mohammed
Format:	Article
Language:	English
Published:	Inderscience Publishers 2010
Subjects:	HG3810 Foreign exchange
Online Access:	http://irep.iium.edu.my/3912/ http://irep.iium.edu.my/3912/ http://irep.iium.edu.my/3912/ http://irep.iium.edu.my/3912/2/An_Empirical_Analysis_of_Exchange_Rate_Misalignment_%26_Portfolio_Inflows_in_Malaysia.pdf

id	iium-3912
recordtype	eprints
spelling	iium-39122012-02-14T07:29:31Z http://irep.iium.edu.my/3912/ The impact of exchange rate misalignment on portfolio inflows in Malaysia Mohd Sidek, Noor Zahirah Yusoff, Mohammed HG3810 Foreign exchange The primary reason why exchange rate misalignment is of interest to economists lie with the notional premise that risks emanating from overvaluation may undermine the competitiveness of Malaysia as a destination for portfolio investment inflows. On the other hand, undervaluation should make her a more attractive host. This study presents an attempt to examine the impact of exchange rate misalignment on portfolio inflows in Malaysia. Results show that events of misalignment have a negative impact on portfolio inflows. Specifically, overvaluation has significant deterrent effect on portfolio inflows but the opposite could not be implied in the case of undervaluation. Therefore, exchange rate policies should be geared to keep the exchange rate in line with the economic fundamentals so as to avoid prolonged overvaluation. Inderscience Publishers 2010 Article PeerReviewed application/pdf en cc_by_nc http://irep.iium.edu.my/3912/2/An_Empirical_Analysis_of_Exchange_Rate_Misalignment_%26_Portfolio_Inflows_in_Malaysia.pdf Mohd Sidek, Noor Zahirah and Yusoff, Mohammed (2010) The impact of exchange rate misalignment on portfolio inflows in Malaysia. American Journal of Finance and Accounting, 2 (1). pp. 33-55. ISSN 1752-7775 (O), 1752-7767 (P) http://www.inderscience.com/browse/index.php?journalCODE=ajfa http://www.inderscience.com/storage/f119358742110126.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3810 Foreign exchange
spellingShingle	HG3810 Foreign exchange Mohd Sidek, Noor Zahirah Yusoff, Mohammed The impact of exchange rate misalignment on portfolio inflows in Malaysia
description	The primary reason why exchange rate misalignment is of interest to economists lie with the notional premise that risks emanating from overvaluation may undermine the competitiveness of Malaysia as a destination for portfolio investment inflows. On the other hand, undervaluation should make her a more attractive host. This study presents an attempt to examine the impact of exchange rate misalignment on portfolio inflows in Malaysia. Results show that events of misalignment have a negative impact on portfolio inflows. Specifically, overvaluation has significant deterrent effect on portfolio inflows but the opposite could not be implied in the case of undervaluation. Therefore, exchange rate policies should be geared to keep the exchange rate in line with the economic fundamentals so as to avoid prolonged overvaluation.
format	Article
author	Mohd Sidek, Noor Zahirah Yusoff, Mohammed
author_facet	Mohd Sidek, Noor Zahirah Yusoff, Mohammed
author_sort	Mohd Sidek, Noor Zahirah
title	The impact of exchange rate misalignment on portfolio inflows in Malaysia
title_short	The impact of exchange rate misalignment on portfolio inflows in Malaysia
title_full	The impact of exchange rate misalignment on portfolio inflows in Malaysia
title_fullStr	The impact of exchange rate misalignment on portfolio inflows in Malaysia
title_full_unstemmed	The impact of exchange rate misalignment on portfolio inflows in Malaysia
title_sort	impact of exchange rate misalignment on portfolio inflows in malaysia
publisher	Inderscience Publishers
publishDate	2010
url	http://irep.iium.edu.my/3912/ http://irep.iium.edu.my/3912/ http://irep.iium.edu.my/3912/ http://irep.iium.edu.my/3912/2/An_Empirical_Analysis_of_Exchange_Rate_Misalignment_%26_Portfolio_Inflows_in_Malaysia.pdf
first_indexed	2023-09-18T20:11:54Z
last_indexed	2023-09-18T20:11:54Z
_version_	1777407533497974784

The impact of exchange rate misalignment on portfolio inflows in Malaysia

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