The effect of fluctuations in exchange rates and interest rates on stock prices in the financial markets

JOURNAL OF ADMINISTRATION AND ECONOMICS
2018, Volume 7, Issue 28, Pages 254-270

Abstract

Abstract: This study aimed to contribute knowledge in the field of finance and knowledge and analyze the relationship between fluctuations in exchange rates and interest rates and stock prices and the development of proposals that could contribute to avoidance of risk by investors. In the practical side, the coefficient of regression, coefficient of correlation, variance and standard deviation were used as methods to test hypotheses. The study reached a number of conclusions as the political, economic and security conditions have a clear impact on the overall economic activity in Iraq during more than 40 years and the prices of companies concerned with research were volatile depending on the economic, political and security conditions and the instability of exchange rates and interest rates are different depending on economic conditions And the most important recommendations were unusual circumstances, other investments should be sought to reduce the risks faced by companies in their various economic activities adoption of hedging to avoid risks, particularly in activities that deal with exchange rates and interest rates and thediversification of investments as a solution to diversification or avoidance of risks as diversification is one of the methods of reducing and avoiding risks.