Global Journal of Management and Business Research, C: Finance, Volume 19 Issue 6

© 2019. Md. Shohel Rana, Tanvir Hasan Anik & Md. Nurul Kabir Biplob. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/ 3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. Factors Influencing Exchange Rate: An Empirical Evidence from Bangladesh By Md. Shohel Rana, Tanvir Hasan Anik & Md. Nurul Kabir Biplob Begum Rokeya University Abstract- Literature effect of exchange rate fluctuations is caused by some macro-economic variables but there have not enough study in this important field. Our purpose was to generalize the main factors behind exchange rate fluctuations of Bangladesh from 1987-2017. We used ADF and PP test for stationary analysis that is unit root test satisfied preconditions for Johansen co-integrating test. Correlation matrix shows the relationships of independent variables with dependent one and agreed with FMOLS test. We find no serial correlation in Q-statistics, LM and Heteroscedasticity test. Johansen co-integration test specifies that there are no co-integrating equations for long run relationship rather the relationship is short run. VAR model and Ganger causality test shows there is a significant effect of Remittance, GDP growth and International trade to Exchange rate fluctuations because R-squared values are more than 60%. Wald test supports the VAR model results by ensuring that there also joint effect of independent variables. Results from FMOLS test concluded that GDP growth and International trade positively affect exchange rate. Remittance has negative effect on exchange rate. Keywords: exchange rate volatility, johansen co-integrating test, independent variables, dependent variables, GDP growth, remittance, international trade. GJMBR-C Classification: JEL Code: F31 FactorsInfluencingExchangeRateAnEmpiricalEvidencefromBangladesh Strictly as per the compliance and regulations of: Global Journal of Management and Business Research: C Finance Volume 19 Issue 6 Version 1.0 Year 2019 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853