Abstract
Capitalist economies, companies face the full range of uncertainty, uncertainty of exchange rates, currency impact on market co relations and determination of Relationship between stock prices and exchange rates in Pakistan has been examined by using monthly data form July 1997 to Jun 2007. And how it is related with International Politics. Currency rates fluctuations do affect our stock exchange. Increasing or decreasing value affects our imports and exports. Regression analysis and correlation tests were used to determine the relationship between stock prices and exchange rates. The empirical result suggests relationship between stock prices and exchange rates.
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