Publishing Journal • Economics and Business Journal (ECBIS)

Factors Affecting The Rupiah Exchange Rate Over The United States Dollar in Indonesia

DOI: 10.47353/ecbis.v2i1.107 Published: 05 November 2023 Pages: 1-15 (Vol. 2, No. 1) Views: 1
Authors & Researchers
I
Irwandi Faculty Economics and Business / Makassar State University1
R
Regina Makassar State University / Makassar2
R
Rahmizal, Maizul University State of Padang / Padang, Indonesia3

Abstract

This study examines the factors that affect the exchange rate of the rupiah against the US dollar in Indonesia between 2013-2022. The observed factors include interest rates, inflation, and money supply. Annual data was used from legitimate sources such as Bank Indonesia and the Central Bureau of Statistics. The results show that interest rates have a significant influence on the rupiah exchange rate, with an increase in interest rates causing a depreciation of the rupiah against the US dollar. Inflation has no significant effect on the exchange rate, although high inflation can affect purchasing power and confidence in the local currency. Money supply also has a significant effect, where an increase tends to cause rupiah depreciation. An increase in money supply causes inflation and decreases purchasing power, thus decreasing the exchange rate of the rupiah against the US dollar

Indexing Journal

Economics and Business Journal (ECBIS) Cover

Economics and Business Journal (ECBIS)

ISSN: 2963-7589 Publisher: PT Maju Malaqbi Makkarana