Rupiah Potentially Strengthens To Rp16,450 Per US Dollar Driven By Trade Negotiations And Inflation

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 Wednesday, May 14.

Ariston revealed that the good news from the results of tariff negotiations between the United States and China still gives positive sentiment to the financial market.

"Optimism for tariff negotiations with other countries," he told VOI, Wednesday, May 14.

But on the other hand, he added that the high import rate in Indonesia is still a burden for the national economy.

Ariston said that US consumer inflation data for April released last night showed results under expectations and helped suppress the strengthening of the US dollar that has occurred in recent days.

In addition, he said inflation, which is still in line with market expectations, is not expected to encourage the Fed to raise its benchmark interest rate.

He conveyed that the movement of the rupiah on Wednesday, May 14 has the potential to strengthen to the level of Rp. 16,450 per US dollar, with the potential for weakening in the range of Rp. 16,550 per US dollar.

Quoting Bloomberg, on Tuesday, May 13, the rupiah spot exchange rate closed down 0.14 percent to the level of Rp. 16,604 per US dollar. Meanwhile, on Friday, May 9, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate closed lower by 0.20 percent to a price level of Rp. 16,532 per US dollar.