This study an attempt to examine the long-run volatility and causality effects of Sri Lankan (LKR) currency and nine currency of emerging countries in Asia against USD over 17 years ., from 01st January, 2002 to 31st December, 2018 by using the Descriptive Statistics (Summary), GARCH (1,1) Model, Correlation and Granger Causality Test. | Exchange rate volatility and causality effect of Sri Lanka LKR with Asian emerging countries currency against ÚD International Journal of Management IJM Volume 11 Issue 2 February 2020 pp. 191 208 Article ID IJM_11_02_021 Available online at http ijm JType IJM amp VType 11 amp IType 2 Journal Impact Factor 2020 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication Scopus Indexed EXCHANGE RATE VOLATILITY AND CAUSALITY EFFECT OF SRI LANKA LKR WITH ASIAN EMERGING COUNTRIES CURRENCY AGAINST USD Kasilingam Lingaraja Assistant Professor Department of Business Administration Thiagarajar College Autonomous Madurai -09 India C. Jothi Baskar Mohan Associate Professor amp Head Department of Business Administration Thiagarajar College Autonomous Madurai -09 India Murgesan Selvam Professor amp Head Department of Commerce and Financial Studies Bharathidasan University Trichy 24 India Mariappan Raja Assistant Professor Department of Business Commerce Bharathidasan University Constituent College Lalgudi Chinnadurai Kathiravan Research Scholar Department of Commerce and Financial Studies Bharathidasan University Trichy 24 India ABSTRACT This study an attempt to examine the long-run volatility and causality effects of Sri Lankan LKR currency and nine currency of emerging countries in Asia against USD over 17 years . from 01st January 2002 to 31st December 2018 by using the Descriptive Statistics Summary GARCH 1 1 Model Correlation and Granger Causality Test. A descriptive statistics and Graphical model were specified and empirical results show a significant currencies movements and the Granger causality test indicates the strong evidence that the causation runs between Sri Lankan currency LKR USD to nine Asian emerging countries currency price behavior against USD. The purpose of the study is to make a finer point with respect to relationship volatility and causality effect between the
