Abstract
The purpose of this study is to determine how much influence the balance of short-term and long-term payment of the rupiah ,analyzing how shocks affect the current account and capital account of the exchange rate and to determine whether thecomponents of the balance of payments which exerts a greater influence on the exchange rate . And to determine thecontribution of several variables in the model that may affect the movement of the exchange rate . The method of analysis usedin this study is the method of analysis Vector Error correction model ( VECM )Results of this study will be useful for the information of the investors in forecasting the exchange rate of dollars in investmentdecisions by looking at the usefulness of the financial information by looking at the efficiency of the foreign exchange market .Results indicate the proposed research hypotheses still have limitations in the field of research so that less can provide a morecomprehensive picture of the effect of the balance of payments on the exchange rate
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