A Proposed Model Of Neural Network For Rupiah Exchange Rate’s Prediction

Abstract

Exchange rates are the value of a foreign currency against a domestic currency. Exchange rates and international trade are two interrelated things. One of the obstacles in international trade activities is due to differences in exchange rates. Exchange rate fluctuations occur every day and are uncertain. For business people, exchange rate uncertainty creates problems that affect losses in their business. Therefore, a prediction is needed to estimate the future exchange rate. In this study, rupiah exchange rate data is used to build a prediction model of the rupiah exchange rate against the dollar (US). The experimental results state that the neural network obtained RMSE results of 0.010 +/− 0.001.