A Study of Interlinkages among Exchange Rate and Stock Price for India

This paper is an attempt to examine the empirical relation between exchange rate and Indian stock price using monthly time series data over period 2011-2021. Johansen’s cointegration test has been applied long run relationship price. Both trace Maximum Eigenvalue statistic are less than 0.05 critical values. Thus, null hypothesis of no accepted stable equilibrium was found exist The analysis further reveals prevalence unidirectional causal from by employing Granger causality test. study support Stock oriented model. So, regulators can predict trends in past values prices which induce profitable trading currency market. would be immense importance for various stakeholders like investors, practitioners policy makers reduce information symmetry owing volatile nature two variables.