Rupiah Potentially Strengthening Driven By Donald Trump's Speech Expetitation

JAKARTA - Financial Market Observer and Commodity Ariston Tjendra said that the movement of the rupiah has the potential to strengthen against the United States (US) dollar on Monday, January 20.

Ariston said the current US dollar index position is in the range of 109.33 higher than last Friday morning, which moved below 109.

Ariston said last Friday night that industrial and manufacturing production data in December showed higher growth than the previous month of 0.9 percent vs 0.2 percent and 0.6 percent vs 0.4 percent, respectively.

"This result helped boost the strengthening of the US dollar index this morning," he said, Monday, January 20.

Ariston said on the other hand market participants might consolidate awaiting Trump's speech regarding the direction of his economic and political policies that may be delivered in his inauguration today.

"This morning the US market looks positive, the regional exchange rate strengthens against the US dollar, the main stock index like Nikkei Hangseng Kospi also looks positive," he explained.

Ariston said the movement of the Rupiah could get a positive impact today even though the risk of weakening is still open in the future. Trump's provocative speech regarding tariffs could boost the weakening of the rupiah again tomorrow.

Meanwhile, Ariston estimates that the movement of the rupiah on Monday, January 20, will be an opportunity to strengthen the rupiah towards the level of Rp. 16,300 per US dollar with the potential for weakening to the level of Rp. 16,400 per US dollar.

Quoting Bloomberg, the Rupiah exchange rate on Friday, January 17, 2024, the rupiah exchange rate in the spot market closed slightly lower by 0.02 percent at the level of Rp. 16,380 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed slightly up 0.03 percent to a price level of Rp. 16,373 per US dollar.