This Afternoon Rupiah Closed Weakened By 20 Points, This Is The Cause

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JAKARTA - The rupiah exchange rate (exchange rate) transacted between banks in Jakarta, on Thursday, January 6 afternoon, closed lower, triggered by signals of an acceleration in interest rate hikes by the United States central bank, The Federal Reserve.

This afternoon, the rupiah closed down 20 points or 0.14 percent to Rp. 14,391 per US dollar compared to the position at the close of the previous trade of Rp. 14,371 per US dollar.

"The US dollar strengthened after the release of the minutes of the FOMC meeting which tended to be hawkish last night," said Monex Investindo Futures analyst Faisyal in his study in Jakarta, reported by Antara.

The US dollar strengthened after US central bank officials suggested they may need to act more quickly in raising interest rates to tackle rising inflation.

Based on the release of the minutes of their Dec. 14-15 policy meeting, Fed officials said that a "very tight" US labor market might trigger faster-than-expected rate hikes and reduce bank overall asset holdings to tackle high inflation.

Another sentiment that underpins the strengthening of the US dollar is the optimistic US employment data reported by the ADP National Employment Report last night which showed a surge in employment by the private sector in the US. The number of workers in the US private sector increased by 807,000 last month, the highest in seven months. , after rising 505,000 in November.

The rupiah opened lower in the morning to Rp14,396 per US dollar. Throughout the day the rupiah moved in the range of Rp. 14,380 per US dollar to Rp. 14,421 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Thursday closed lower to Rp14,396 per US dollar compared to the previous day's position of Rp14,365 per US dollar.