Rupiah Potentially Weakens Due To Donald Trump's Speech

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 Tuesday, January 21.

Ariston said in his inaugural speech that President Trump was still mentioning the adjustment of import rates for his trading partner countries to improve US revenue.

"Trump also confirms an increase in import rates of 25 percent for Mexico and Canada," he said, Tuesday, January 21.

Ariston said that this tariff increase could certainly trigger a retaliatory action from the country concerned and in the end could lead to a trade war.

According to Ariston, the movement of the Rupiah has the potential to weaken today from Trump's affirmation.

Meanwhile, Ariston estimates that the movement of the rupiah on Tuesday, January 21, has the potential for weakening the rupiah towards the level of Rp. 16,400-Rp. 16,450 per US dollar with the potential for support to the level of Rp. 16,300 per US dollar.

Quoting Bloomberg, the Rupiah exchange rate on Monday, January 20, 2024, the rupiah exchange rate on the spot market closed up 0.08 percent at the level of Rp. 16,367 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed slightly up 0.01 percent to a price level of Rp. 16,372 per US dollar.