ANALISIS FAKTOR-FAKTOR FUNDAMENTAL PERGERAKAN NILAI TUKAR RUPIAH

Abstract

The research aims to: 1) analyze the behavior of Rupiah exchange rate with a basket of currency; 2) determine factors influencing the fluctuation of Rupiah exchange rate. In order to accomplish those aims some hypothesis are set up, and Dornbusch overshooting model is used to test them. The data using in this research is from the exchange rate of Rupiah from 1987 to 1997. The basket of currency consist of US Dollar; Japanese Yen; Singapore Dollar; The Nederland Guilder; and Pound sterling The behavior of Rupiah exchange rate during that period is highly consistent with prediction of the Dornbursch overshooting model. Domestic factors such as: money demand, income, and inflations are dominant in influencing the Rupiah exchange rate.