RT Journal Article
SR Electronic
T1 Investing Strategies as a Sharp Movement in Exchange Rates Occurred: <em>Evidence for the Constituent Stocks of SSE 50 and TW 50</em>
JF The Journal of Investing
FD Institutional Investor Journals
SP 58
OP 68
DO 10.3905/joi.2018.27.4.058
VO 27
IS 4
A1 Min-Yuh Day
A1 Manhwa Wu
A1 Paoyu Huang
A1 Yensen Ni
YR 2018
UL https://pm-research.com/content/27/4/58.abstract
AB The authors argue that a sharp movement in exchange rates may result in stock market fluctuation due to the stimulation of investors’ sentiments. By using the constituent stocks of the SSE 50 and TW 50, they reveal that share prices would either drop substantially as a sharp depreciation occurred or increase considerably as a sharp appreciation in Chinese yuan (CNY) took place. These results are far different from the moves of share prices seen with sharp movements in New Taiwan dollars (TWD), which appear to react only slightly, as compared with the case for the CNY. These findings could be useful for investors in trading these constituent stocks during periods of dramatic currency movements.TOPICS: Currency, security analysis and valuation, emerging, performance measurement