Abstract
The movement of Rupiah exchange rate has strong relation with the dynamics of money supply, income level, interest rate, and economic condition such as in economic crisis. The objective of this study to analyze the effect of economic variables such as the money supply, income level, interest rate, and economic crisis to the movement of the exchange rate. Data used in this paper in time series from Q1 2000 to Q2 2014, while the method applied was Ordinary Least Square (OLS) with statistical tests such as multicolinearity, hetero scedasticity, autocorrelation, t-test and F-test. The resuts of this study show that the independent variables such as money supply, interest rate and economic crisis had a significant impact on the exchange rate, except income level. All the independent variables have the sign of the coefficient which supports hypothesis. Based on the F-test, all independent variables all together have a significant influence on the exchange rate.
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