Analysis of Economic Opening on Rupiah Exchange Rate on United States Dollars (2008-2018)

The phenomenon that often occurred in
connection with the exchange rate fluctuations in currency values
is uncertain. Changes in behavior rupiah exchange rate against
the U.S. dollar that occurred in Indonesia are affected by
economic fundamentals and openness factors. The aim of this
research is to analyze the influence of inflation, interest rate,
openness, and exchange rate volatility Rp/USD to the exchange
rate of rupiah exchange rate against the U.S. dollar. This
research used Error Corection method ECM) and Generalized
Autoregressive Conditional Heteroscedasticity (GARCH)
method. This research used three months data started at the first
three months in 2008 until the fourth three months in
2018.According to the result of partial test results (z test)
indicates that inflation, interest rate, openness and exchange rate
volatility Rp/USD positive and significant effect on rupiah
exchange rate against the U.S dollar partially. While the
simultaneous test (F test) indicates that inflation, interest rate,
openness and exchange rate volatility Rp/USD has significant
effect on rupiah exchange rate against the U.S dollar
simultaneously.