Euro-Dollar Parity and Effects of The Real Exchange Rates on The Index of IMKB 100

In this study, the relation between the stock prices that are traded in IMKB with Euro-Dollar Parity and Real Effective Exchange Rate Index are examined by the Multiplier Linear Regression and this relation is also investigated by the Granger Causality Test. Monthly data set are used including from the January 2000 to July 2009. In the analysis, averages of daily closing prices of IMKB 100 in months have been used as dependent variable. As independent variable, average of daily values of Euro-Dollar parity in months an Consumer Price Index (CPI) based Real Effective Exchange Rates Index Values at the end of months have been used. The results of the study indicated that Euro-Dollar Parity and Real Effective Exchange Rate Index affect the Index of IMKB 100 postively with 77,5%. In addition, according to Granger Causality Test results, a causality has been founda runnig from the Index of IMKB 100 to the Euro-Dollar Parity and Real Effective Exchange Rate.