العلاقة بين سعر الصرف و أسعار الأسهم في السوق السعودية

Abstract EN

This paper aims to detect the possibility of a relationship between exchange rates and stock prices in general and the stock prices of the industrial sector and the banking sector in the Saudi market.

The study uses two exchange rate Of dollar.

The U.S.

dollar against the euro and U.S.

weighted average dollar exchange rate.The selection of the U.S.

dollar due to the fact that the Saudi riyal is fixed against the U.S.

dollar.

The study used a cointegration and causality tests.

cointegration Testing results showed the absence of any long-term relationship between exchange rateand any of the studiedstocks prices.

The causality tests showed conflicting result.

Thus, the conclusion is that no relationship of any kind between stock prices and exchange rate in the Saudi market.