Rupiah Strengthening Influenced By Contestation Of The 2024 Presidential Election

Illustration (Photo: Doc. Antara)

Bank Woori analyst, Brother BWS Rully Nova, said that the strengthening of the Rupiah was also influenced by the 2024 Presidential Election (Pilpres) contestation, namely the optimism of market players towards the prospective vice presidential candidate (cawapres) which will soon be announced by the Indonesian Democratic Party of Struggle (PDIP) coalition.

The (Sentiment for strengthening the rupiah) from domestically is influenced by the activities of the presidential election, namely the optimism of market players towards the prospective vice presidential candidate which will soon be announced by the PDIP coalition," he said as quoted by Antara, Friday, September 29.

At the close of trading today, Rupiah's currency weakened by 60 points or 0.39 percent to Rp15,460 per US dollar from the previous closing of Rp15,520 per US dollar.

The Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate of Bank Indonesia on Friday also strengthened to IDR 15,487 from the previous IDR 15,526 per US dollar.

According to Rully, significant economic data is not widely circulated, thus making market participants speculate on the news of the 2024 presidential election which is expected to have a good effect on the market in the future.

Meninjau dari keadaan global, index dolar Amerika Serikat (AS) mengalami penurunan karena yield bond pemerintah AS yang turun dan klaim pengangguran AS yang berada di angka 204 ribu pada September 2023, meningkat dari Agustus 2023 yang sebesar 202 ribu.

According to Currency Market Analyst Lukman Leong, the Rupiah strengthened against the US dollar which was corrected after US economic data on delayed home sales and the very weak manufacturing index of The Fed Kansas.

It was noted that the manufacturing activity index of The Fed Kansas weakened to minus 13 in September 2023 compared to August 2023 which was 12.0.

"The strengthening (Rupiah) may be limited, considering that investors will still anticipate important US PCE inflation (Personal Consumption Expenditure) data tonight," Lukman said.

US PCE index prediction is estimated to rise 0.2 percent compared to the previous month.