Moreover, the researcher found that the
interest rates had no effect on exchange rate. This would disagreed with Chowdhury and Hossain (2014)
concluded that interest rate had positive impact on exchange rate in Bangladesh economy, and Cho and
West (2003) found interest rates caused exchange rate appreciation in Korea and the Philippines,
depreciation in Thailand, and Chow and Kim (2004) found indicated that increased exchange rate
flexibility had not led to greater stability in interest rates in these economies.