The article examines how economic factors affect exchange rates in Malaysia from 1989 to 2018. The researchers looked at Gross Domestic Product, Unemployment, and Inflation to see their impact on exchange rates. They found that GDP has a strong relationship with exchange rates, while Unemployment and Inflation do not. Specifically, an increase in GDP leads to a higher exchange rate, and higher inflation leads to a lower exchange rate. To maintain exchange rate stability, it is suggested to align fiscal and monetary policies and trade policies. Future research could explore more economic variables, longer time periods, and other countries.