Dynamics of the exchange rate in Tunisia

This paper analyzed the association between macroeconomic variables and volatility of Tunisia stock exchange .We have taken data from 1993 to 2012 and applied the Pearson s correlation test. Our results are showing that there is always association between macroeconomic variables and stock market of Tunisia. Now a day, it is seen that exchange rate is appearing as the strategic variable .Exchange rate is the way of the express the price of one country s currency in terms of another currency .Thus, with the help of exchange rate can be determined prices of all foreign and local good