Full Lenght Article
Does the corona virus affect market volatility and exchange rates in Indonesia?

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Abstract

The business world is in ruins caused by the COVID-19 or coronavirus case that started in the Hubai province in China
at the end of 2019. The virus has spread to more than 120 countries in the world. Various attempts were made by the leadership
of the State to stem the outbreak of the COVID-19 virus, ranging from restrictions on or closing the entrance of foreign nationals
to other countries, as well as lockdown policies or stopping business and trade activities carried out even in Indonesia religious
activities, school education, campuses closed, cinemas as well as companies and offices, are closed to tackle the coronavirus
outbreak. The research method uses event study using secondary data about the incidence of positive COVID-19 cases and
exchange rates and their effects on market volatility in the stock market. The results of this study are that the Covid-19 case
variable does not affect the exchange rate of the rupiah against the US dollar, so does the Covid-19 case for market volatility in
the short term. the stock market, while the exchange rate variable has a significant effect on market volatility in the stock market

Keywords

coronavirus
market volatility
exchange rate
stock market

Declarations

Conflict of Interest Statement

The author (s) declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

References

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Bibliographic Information

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  • Submitted
    13 April 2021
  • Revised
    13 April 2021
  • Published
    13 February 2021