Market Waiting For US Economic Data, Rupiah Potentially Weakening

JAKARTA - The rupiah exchange rate in trading Wednesday, October 30, 2024 is expected to weaken against the United States (US) dollar.

Quoting Bloomberg, the Rupiah exchange rate on Tuesday, October 29, 2024, the rupiah exchange rate on the spot market closed down 0.30 percent at the level of Rp. 15,771 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate closed lower by 0.20 percent to a price level of Rp. 15,760 per US dollar.

Director of PT Profit Forexindo Berjangka Ibrahim Assuaibi conveyed data on gross domestic product in the third quarter of 2024 which will be released on Thursday. The PCE price index data on the Fed's choice of inflation and non-farm payroll data will be released on Friday, with both data released just weeks before the Fed meeting.

In addition, the market is waiting for further economic signatures from China, after Beijing's latest stimulus measures failed to inspire confidence in economic recovery.

"The current focus is on the purchase manager index data from China, which will be released on Thursday, for further signs of the economy," he said in a statement quoted on Wednesday, October 30.

After Israel carried out an attack on Iran that had little impact due to solidly duped Iranian defenses, however, tensions remained high, as Iranian Foreign Ministry spokesman Esmaeil Baghaei said Monday that Iran would use all available tools to respond to Israeli attacks on weekends.

Ibrahim explained that the US warned Iran at the United Nations Security Council of grave consequences if it took further aggressive action against Israel or US personnel in the Middle East.

Meanwhile, from within the country, Commission XI of the DPR proposed nine Draft Laws aka Bills to be included in the list of the 2025-2029 National Legislation Program or Prolegnas, including the Bill on the Elimination of State Receivables and Bills on State Finance.

The proposal was revealed in a meeting of the Legislation Body (Baleg) of the DPR, every member of the DPR council proposed a proposed bill to be included in the 2025-2029 Prolegnas, including Commission XI which oversees development, finance, and the state's monetary.

In the presentation of a team of experts from the DPR Baleg, it was shown that Commission XI proposed a Carry Over Bill from the DPR for the previous period, namely the Bill on the Procurement of Public Goods and Services.

The 2025-2029 Prolegnas must be set no later than November 18, 2024. Therefore, the DPR Baleg has about 20 days to formulate and establish a list of bills that will be included in the 2025-2029 Prolegnas.

Ibrahim estimates that the rupiah will fluctuate but close lower in trading Wednesday, October 30, 2024 in the price range of IDR 15,760 - IDR 15,870 per US dollar.