This study aims to analyse the influence of inflation rates and interest rates on foreign exchange rates for the period from 2000 to 2023. Using secondary data, this study applied a multiple linear regression method. The analysis results show that inflation has a negative and statistically significant effect on the exchange rate. On the other hand, interest rates have no significant impact on the exchange rate. Simultaneously, inflation and interest rates have a significant effect on the exchange rate. These findings underscore the importance of adaptive monetary policy and monitoring of external factors in maintaining exchange rate stability and the national economy.