ANALYSIS OF THE EFFECT OF INFLATION, INTEREST RATE, THE MONEY SUPPLY ON RUPIAH EXCHANGE RATE PERIOD 1996-2014

Abstract

The data source is from Bank Indonesia (BI), the result of this research shows that the domestic inflation has a significant positive influence to rupiah exchange rate toword American Dollar, and cash rate ratio has a negative influence to Rupiah exchange rate with American Dollar, while overseas inflation, domestic interest rate , overseas interest rate they do not have significant influence toword Rupiah exchange rate with American Dollar. From the determination coefficient result (R²) show that the subject which has been researched can explain 93,11 percent toword Rupiah exchange rate while the rest 3,89 percent can be explained by other subject out of model.