This study is aimed to examine the impact of US News and exchange rate exposure on emerging
economies of Pakistan, China, Turkey and Iran. Daily exchange rates have been used for the
period Jan 1, 2003 to Dec 31, 2018 to identify the volatility in exchange rate exposure due to news effect. US
News is modeled with variance equation respectively for each country exchange rate. GARCH (1,1) by Bollerslev
(1986), and EGARCH (1,1) by Nelson (1991) models have been used to estimate the volatility of exchange rate
dynamics. Results indicate that impact of US News is significantly positive on the exchange rate of Pakistan and
China and the results of US news impact on Turkey and Iran are insignificant. Present study is helpful for investors,
financial analysts and economic decision makers for understanding the changing dynamics of exchange rate
Rana Shahid Imdad Akash
Assistant Professor, Department of Commerce, University of the Punjab, Jhelum Campus, Jhelum, Punjab, Pakistan.
Assistant Professor, Institute of Business Management Sciences, University of Agriculture, Faisalabad, Punjab, Pakistan.
Associate Professor, Institute of Business Management Sciences, Government College of Commerce, Faisalabad, Punjab, Pakistan.
Exchange rate, EGARCH, US News Impact Curve, Volatility.