Observer: Rupiah will still weaken against the US dollar –

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The US dollar index is seen strengthening in the 104 area (base points), where previously it was around 103 (base points).

Jakarta ( – Money market observer Ariston Tjendra predicts that the rupiah will still weaken against the US dollar on Friday.

Potential to weaken towards IDR 15 thousand with potential support in the range of IDR 14,900.

“The US dollar index appears to be strengthening in the 104 (basis point) area, where it previously moved around 103 (basis point),” he said when asked by in Jakarta.

Also read: BI: Rupiah strengthened 0.63 percent due to stabilization policy

At the opening of trading Friday morning, the rupiah exchange rate (exchange rate) transacted between banks in Jakarta slightly weakened by 0.02 percent or 3.5 points to IDR 14,956 per US dollar from the previous IDR 14,953 per US dollar.

Supporting the strengthening of the US dollar against other currencies was the release of the first quarter of 2023 gross domestic product (US) data which was revised up to 1.3 percent from the previous 1.1 percent.

US weekly jobless claims data was also released which was better than expected showing a decline in jobless claims.

Also read: The US dollar strengthens in early Asia, eyeing a third weekly gain

According to Ariston, the improving US economic data could be a reason for the US Central Bank (The Fed) to maintain a high interest rate policy, and could even increase interest rates again.

“In addition, an agreement to increase the US debt limit has not yet been reached, even though it is almost close deadline debt to be default increased the concerns of market players, so that some market players chose to enter safe US dollar assets,” he said.

Domestically, Bank Indonesia (BI) gave an indication that it would not yet cut its benchmark interest rate because it saw that the Fed’s benchmark interest rate would not yet fall. BI is wary of increasing global uncertainty that could put pressure on the rupiah.

Reporter: M Baqir Idrus Alatas
Editor: Nusarina Yuliastuti


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