Impact Of Strengthening US Dollars, Rupiah Potentially Reaches IDR 16,300

Financial Market and Commodity Observer Ariston Tjendra estimates that the movement of the rupiah exchange rate has the potential to weaken against the US dollar today by breaking to the level of Rp. 16,300 per US dollar.

According to Ariston, the rupiah may still be under pressure against the US dollar today because it is still affected by expectations of cutting US benchmark interest rates.

"Now market participants are waiting for important US data later tonight and early in the morning. The market is wary of US consumer inflation data in May and the announcement of a new US monetary policy," he told VOI, Wednesday, June 12.

Ariston explained that the increasing US inflation data and the Fed's stance, which is still considering an increase in the benchmark interest rate, could encourage the strengthening of the US dollar again.

According to Ariston, this morning from China, consumer inflation data released showing deflation in May. This deflation could mean that consumption in China has decreased which can be interpreted as negative for the market.

"This can certainly provide negative sentiment to risky assets including the rupiah," he said.

Ariston estimates that the movement of the rupiah on Wednesday, June 12 has the potential to weaken towards Rp16,300-Rp16,330 with potential support in the range of Rp16,250.

Quoting Bloomberg, the Rupiah exchange rate on Tuesday, June 11, 2024, the rupiah spot exchange rate was closed slightly by 0.05 percent to the level of Rp. 16,291 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed lower by 0.03 percent to a price level of Rp. 16,295 per US dollar.