Economics and Business Journal
Vol. 2 No. 1 (2023): November

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

Irwandi (Unknown)
Regina (Unknown)
Rahmizal, Maizul (Unknown)



Article Info

Publish Date
25 Nov 2023

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

Copyrights © 2023






Journal Info

Abbrev

go

Publisher

Subject

Economics, Econometrics & Finance

Description

Economics and Business Journal (ECBIS) | ISSN (e): 2963-7589 is an international peer-reviewed, open access scientific journal dedicated to the advancement and dissemination of research results that support high-level research in the fields of Economics, Management and Business, this journal ...