The result of our research work is summarizedas the independent variables strongly related with dependent variable. Theoretically the result is overall significant. exchange rate and economic factor of the country have strong relationship. it shows that when economic factors change exchange rate will also change. our analysis shows that independent variables have positive relation and some have negative relation with exchange rate. Interest rate, inflation rate, current account and GDP are strongly related with exchange rate and overall significant. All these factors influence exchange rate, which have correlation coefficient of R= 92.6% and coefficient of determination R2=85.7%. P-value=.011 So overall model is significant. The result is that our dependent and independents variables are strongly correlated.