Abstract

In recent years, it is stated that stock market is gained high level importance in investment progress. Likewise macroeconomic variable, derivatives, equities are playing major role in stock market because it is termed as important figure based on socioeconomic and political forum. In this research paper, attempt has been made to explore the relation especially the causal relationship. Many commodities and in the financial market has Increased globalization and financial integration which led to volatility and uncertainty. To mitigate the effects of these fundamental risks, financial derivatives were introduced. Therefore, diagnose interrelationship between these two variables is need .This study enhance the interrelationship between currency exchange rate and stock market performance. For this we have selected Real Broad Effective Exchange Rate of monthly average rates as an independent variable and NSE Index as a dependent variable and data are collected for the period of 5 years and 6 months starting from January 2020to June 2025. All the data are collected and analysed with the usage of econometric tool. An accurate analysis is determined.

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