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ABSTRACT

This study investigates the impact of Foreign Direct Investment (FDI) and the Covid-19 pandemic on exchange rate movement in Malaysia. Exchange rate volatility represents a key macroeconomic challenge for emerging economies experiencing external shocks and policy uncertainty. A cross-sectional research design employing both qualitative and quantitative approaches was adopted. Primary data were collected through structured questionnaires from 118 respondents with knowledge of macroeconomics and financial markets, complemented by secondary data from international financial institutions. Statistical analysis using SPSS indicates that both FDI and Covid-19 have a significant relationship with exchange rate movements in Malaysia. The findings emphasize the importance of policy consistency, economic resilience, and strategic FDI positioning in mitigating exchange rate instability during global economic disruptions.

Keywords: Foreign Direct Investment, Covid-19 Pandemic, Exchange Rate Volatility, Malaysian Economy