Currency appreciation drives stronger stock market impact in Vietnam.
The study looked at how changes in exchange rates affect stock prices in Vietnam. They found that the impact of exchange rate changes on stock prices is different depending on whether the currency is getting stronger or weaker. Stock prices react more strongly to currency appreciation than depreciation in both the short and long term. This means that the relationship between exchange rates and stock prices in Vietnam is not symmetrical, and regulators need to consider this when managing the stock and foreign exchange markets.