Rupiah Potentially Weakens Driven By External Sentiment

JAKARTA - Financial Market Observer and Commodity Ariston Tjendra said that the movement of the rupiah has the potential to weaken against the United States (US) dollar on Monday, December 16, driven by external sentiment.

"This morning's dollar index moved lower than last Friday morning, 107 vs 106.85," he told VOI, Monday, December 9.

Ariston said the market's attention would be focused on the results of the US Central Bank's monetary policy meeting which would be announced on Thursday morning.

Therefore, Ariston said there would be a possibility that the movement of the rupiah against the US dollar ahead of the event would not be much.

"The US/Rupiah dollar will consolidate. The market may not take an aggressive position," he said.

According to Ariston, from recent US data released such as inflationary data showing an increase that exceeds projection, there is a potential for the Fed to issue a signal of reluctance to lower interest rates again.

Therefore, Ariston estimates that the movement of the rupiah on Monday, December 16 has the potential to weaken against the US dollar towards Rp. 16,050 with potential support in the range of Rp. 15,970.

Quoting Bloomberg, the Rupiah exchange rate on Friday, December 13, 2024, the rupiah exchange rate in the spot market closed higher by 0.4 percent at the level of Rp. 16,009 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed up 0.3 percent to a price level of Rp. 15,987 per US dollar.