Analysis of the Rupiah Exchange Rate’s Response to Interest Rates, Inflation, and Foreign Debt

DOI

10.2991/978-94-6463-204-0_23How to use a DOI?

Keywords

Exchange Rate; Interest Rate; Inflation; Foreign Debt; OLS

Abstract

Today, the global market is highly valued by all countries. Every country undoubtedly needs aid from other countries to meet its requirements. An essential component of international trade is the exchange rate. The exchange rate may be used as a yardstick for the state of a country’s economy since it influences the cost of imported goods in international trade activities. Such as when the rupiah depreciates against the dollar. Since imported goods are needed, their cost will rise along with all other commodity prices in the country, making it more difficult for people to meet their needs. This study aims to investigate how interest rates, inflation, and foreign debt affected the rupiah’s exchange rate against the US dollar from 2012 through 2021. The analytical method utilized is multiple linear regression using Ordinary Least Square (OLS), and the secondary data type is quarterly time series data from 2012 to 2021. The analytical method utilized is multiple linear regression using Ordinary Least Square (OLS), and the secondary data type with quarterly time series from 2012 to 2021 is used. The study’s findings showed that the rupiah’s exchange rate versus the US dollar in Indonesia was positively and significantly impacted by variable interest rates and foreign debt. The currency rate for the rupiah, however, was not severely impacted by inflation.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Faisal Anas
AU  - Eni Setyowati
PY  - 2023
DA  - 2023/10/04
TI  - Analysis of the Rupiah Exchange Rate’s Response to Interest Rates, Inflation, and Foreign Debt
BT  - Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
PB  - Atlantis Press
SP  - 262
EP  - 269
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-204-0_23
DO  - 10.2991/978-94-6463-204-0_23
ID  - Anas2023
ER  -