The Relationship Between Interest Rates And Foreign Exchange Rates In Kenya
Abstract
The objective of this study was to determine the relationship between interest rates and
foreign exchange rates in Kenya. The study used data from June 2006 to June 2013. This
was secondary data collected from the Central Bank of Kenya website. Regression
analysis was used to analyze the data. Further, the t-statistic and F significance ANOVA
were used to test the hypothesis.
The research findings revealed an insignificant positive relationship between interest
rate and foreign exchange rate. This was however contrary to the general understanding
that interest rate and foreign exchange rates have indirect relationship.
Citation
Mukopi,Timothy S.,November,2013.The Relationship Between Interest Rates And Foreign Exchange Rates In Kenya.Publisher
University of Nairobi