DETERMINANTS OF THE VOLATILITY OF THE RUPIAH EXCHANGE RATE AGAINST THE DOLLARSAMERICA IN THE MIDDLE OF THE COVID-19

Pudji Astuty

doi:10.30998/jabe.v9i1.14438

DETERMINANTS OF THE VOLATILITY OF THE RUPIAH EXCHANGE RATE AGAINST THE DOLLARSAMERICA IN THE MIDDLE OF THE COVID-19

Pudji Astuty^(1*)

(1) Borobudur University
(*) Corresponding Author

Abstract

Liberalization, regionalization, and globalization have made the inflow of goods, services, and capital easier to break through the regional boundaries of a country, and the barriers have continued to decrease for global trade or business. cross border. The consequences of liberalization, regionalization, and globalization demand the existence of a country's economic transparency which can cause concerns for every country, including Indonesia, especially regarding the stability of its currency exchange rate. During the Covid-19 Pandemic, at the end of March 2020, the Rupiah exchange rate against the US Dollar weakened by 18% compared to its position in December 2019 (before the Covid-19 Pandemic). The exchange rate of the Rupiah against the US Dollar is continuously fluctuating and tends to weaken. The volatility of the Rupiah exchange rate against the US Dollar and its large volatility over a long period can disrupt the economy as a whole. The purpose of this research is to analyze the factors that influence the volatility of the Rupiah exchange rate to the US Dollar. This research uses inferior information on duration (time series) from 2009 to 2020 (information per year). The results of the research can be concluded that the JCI, Trade Balance, Foreign Loans, Inflation, and Interest Rates have an important influence on the volatility of the Rupiah exchange rate to the US Dollar either simultaneously or partially

Keywords

Covid-19, Foreign Debt, Inflation, Interest Rates, JCI, Rupiah Exchange Rate, Trade Balance

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DOI: http://dx.doi.org/10.30998/jabe.v9i1.14438