A deep understanding of the effect of interest rate parity on the rupiah exchange rate is crucial in formulating appropriate economic policies that are responsive to the dynamics of the global financial market. Fluctuations in the rupiah exchange rate not only affect the purchasing power of the Indonesian people, but also capital in this country. This study aims to comprehensively examine the effect of interest rate parity on the rupiah exchange rate in Indonesia in the context of the global economy, using a regression analysis approach, historical data on nominal interest rates, international interest rates, and the rupiah exchange rate are collected and analyzed to determine the relationship between these variables. Based on the covered interest rate parity (CIRP) theory and the covered interest rate parity (UIP) theory, this research hypothesis is proposed to test whether the difference in interest rates between Indonesia and its trading partner countries has a significant effect on the rupiah exchange rate. The results of the analysis that have been carried out state that the relationship between the nominal interest rates of Indonesia and the United States has no impact on the Rupiah/Dollar exchange rate until 2023.