Abstract

The paper aimed to examine the causes of fluctuations in oil prices that may be due to fluctuating foreign exchange rates and also to investigate the same relationship existence between the two variables. The present study has been conducted in OPEC nations as these are the nations which play an important role in determining oil prices, though oil prices have been taken from NYMEX WPI from period 1997-2011. The results were examined and analyzed by using Toda and Yamamoto causality approach (1995) and mixed results were found.

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