Rupiah Exchange Rate Strengthens To Rp15,186 Per US Dollar, Check Out The Motivater

Illustration (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate rose 0.16 percent to the level of IDR 15,186 per US dollar on Friday, August 4.

Bank Woori analyst Brother BWS Rully Nova said today's strengthening of the rupiah was influenced by domestic factors, namely strengthening the Indonesian Manufacturing Purchasing Managers Index (PMI).

At the opening of trading on Friday morning, the rupiah exchange rate transacted between banks in Jakarta rose 0.16 percent or 25 points to Rp15,161 per US dollar from the previous Rp15,186 per US dollar.

"Index PMI in manufacturing Indonesia in July 2023 increased to 53.3 from 52.5 (in June 2023)," he said as quoted by Antara.

From external factors, sentiment came from the optimism of the Chinese government's economic stimulus policy.

"The Chinese government will increase its economic liquidity in the infrastructure sector through the private sector," he said.

Meanwhile, Money Market Observer Ariston Tjendra said the strengthening of the rupiah was influenced by US allowance claim data which was no better than market expectations, namely 227 thousand or according to expectations.

In addition, consolidation in the market ahead of important US data tonight, namely Nonfarm Payrolls data, unemployment rates, and US average wage growth data for July 2023 is predicted to be lower than the previous month's data.

The market sentiment appears to be still negative for risky assets this morning. So, there is a possibility that the rupiah will weaken again against the US dollar," said Ariston.

Dollars slipped from a four-week peak at the end of trading Thursday (Friday morning WIB), after US labor market data failed to impress the day before the main work report, and as yields of government bonds rose but weakened by the end of trading.

The non-farm productivity rose to 3.7 percent on an annual basis, helping to curb labor cost growth and helping prospects for improving US inflation.

However, labor productivity has grown at the level of 1.4 percent since the fourth quarter of 2019, well below the long-term average since 1947 of 2.1 percent.

Other data suggest the number of Americans who made new claims for unemployment benefits rose slightly last week, while layoffs fell to an 11-month low in July amid a tight labor market.