ISSN: 2225-8329
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The spread of the Corona Virus Disease pandemic (COVID-19) is so fast that it poses a health threat and an economic crisis. Since the beginning of March, COVID-19 has spread in Indonesia. Some economic elements, such as the exchange rate, share prices, and so on, have been quite turbulent. This study analyzes the effect of Corona Virus Disease variable (COVID-19), as well as national stock price variables, world oil price variables and exchange rates of countries in ASEAN on IDR / USD exchange rate volatility in the long term and short term. The approach used is a quantitative analysis with the ARDL method and using the ARCH / GARCH method to calculate exchange rate volatility. Estimation results in the selected model show that national stock prices, COVID-19, and world oil prices have a significant effect. Both have a negative correlation with exchange rate volatility in the long run. In the short term, only the national stock price variable does not affect the exchange rate volatility. In contrast, the COVID-19 variable and world oil prices have a significant effect, and each is positively and negatively related to exchange rate volatility. Estimation results show that the exchange rates of countries in ASEAN affected exchange rate volatility during the COVID-19 Pandemic.
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In-Text Citation: (Handoyo et al., 2021)
To Cite this Article: Handoyo, R. D., Ilyas, S. M., Ridzuan, A. R., Azhar, N. A. Z. M., & Shaari, M. S. (2021). Towards Achieving Sustainability in Financial Market: The Impact of Covid-19, Oil Price, Stock Price on Exchange Rate Volatility in Indonesia. International Journal of Academic Research in Business and Social Sciences, 11(5), 842–863.
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