Fig. 1.

Plots of key variables. The figure illustrates the line charts for key variables of interest to the paper’s hypothesis that exchange rate returns determine stock price returns of Japan. The variables are SR, which is the log percentage return of the Nikkei price index; ER, which is the log percentage returns of the Yen–US dollar exchange rate specified such that an increase in Yen–US dollar indicates a depreciation of the Yen; $SV$, which is the Nikkei stock average volatility index; and OIL, which is the WTI spot price of oil. The data sample is $04∕1∕2010$ to $16∕8∕2020$.