This study explores foreign exchange rate exposure using 59 non-financial firms listed on Karachi stock exchange. The time period of the research is 2006- 2010. Exchange rates such as Rupees to US dollar, Rupees to yen, Rupees to UK pound and Rupees to Euro are taken against individual firm’s value in linear model, to recognize foreign exchange exposure in weekly and quarterly horizons. According to the results, firms found positively exposed to US dollar and negatively exposed to Euro. The research also reveal that firm’s exposure to foreign exchange rate increases with time horizon. US dollar has highest beta coefficient concluding to be affecting firm’s value more than other exchang
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