Rupiah Potentially Continues Weakening To Rp15,820 Per US Dollar

JAKARTA - The rupiah exchange rate in trading Wednesday, March 6, 2024, is expected to weaken again against the United States (US) dollar.

Quoting Bloomberg, the Rupiah exchange rate on Monday, March 4, the rupiah spot exchange rate was closed down 0.24 percent Rp15,742 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia (BI) closed lower by 0.17 percent to a price level of Rp15,723 per US dollar.

Director of PT Profit Forexindo Berjangka Ibrahim Assuaibi conveyed that the testimony of Fed Chairman Jerome Powell and nonfarm payroll data is eagerly awaited by the market to find out further clues related to US interest rates.

Ibrahim estimates that the rupiah will fluctuate but closed lower on trading Wednesday, March 6 in the price range of IDR 15,760 - IDR 15,820 per US dollar.

" Analysts expect Powell to reaffirm his stance that the Fed needs to be more convinced that inflation is moving back towards the bank's annual target of 2 percent, and the Fed chair is expected to maintain its hawkish stance," he said in a statement quoted Wednesday, March 6.

However, based on the CME Fedwatch tool, traders are still considering a greater chance of lowering interest rates by 25 basis points in June 2024.

Then, consumer sentiment data that is weaker than the estimates and data on the PCE price index that are in line sparked this assumption over the past week.

This week's focus is also on nonfarm payroll data for February, which will be released on Friday, given that the power of the labor market is also one of the Fed's main considerations for adjusting interest rates.

Furthermore, in Asia, Beijing set a GDP target of 5 percent by 2024, the same as in 2023. However, with the target of a lower fiscal deficit that year, investors question how much this target can be achieved, because the economy no longer has good prospects. a lower basis for being compared to the COVID-19 pandemic.

From an internal perspective, the market is currently monitoring the progress of the DPR plenary meeting which is colored by interruptions regarding the cheating of the 2024 Presidential Election (Pilpres) driven by the PDIP, PKB and PKS and Nasdem factions.

Even the PDIP, PKS and PKB and Nasdem factions continue to voice their voices about the use of the right of inquiry to investigate allegations of fraud in the implementation of the 2024 presidential election.

If later the government is proven to have committed fraud in holding elections, it must be followed up in accordance with statutory regulations. On the other hand, if it is not proven then it can be a clarification of negative issues to the government.

In addition, the PDIP, PKB and PKS factions added that state facilities should not be used for personal interests or a group of parties only. Including, in the context of holding elections. So that future elections can be guaranteed quality.