EFFECT OF U.S DOLLAR RATE SHOCKS ON TSE MAIN INDICES REACTION

Evidence is presented that a change in the value of the Rial does not have a significant immediate nor lagged impact on the Iranian stock market as a whole. Using abnormal rates of return, Automobiles is the only industrial sector for which a two-year lagged relationship is confirmed. Overall, "the falling Rial" or the mighty Rial did not hurt the Iranian economy over the 2004-2014 period; it actually improved the stock market performance of several specific industries.