The Movement of the Rupiah Has the Potential to Continue Strengthening, This is the Reason

Illustration. (Photo: Doc. Antara)

JAKARTA - Analysts estimate that the rupiah exchange rate is expected to continue strengthening against the US dollar in trading on Tuesday, November 28.

Quoting Bloomberg, the Rupiah exchange rate on Monday, November 27, the spot rupiah exchange rate strengthened 0.46 percent to IDR 15,494 per US dollar. Meanwhile, the Jisdor rupiah exchange rate strengthened 0.38 percent daily to a price level of IDR 15,527 per US dollar.

Currency and Commodity Observer Lukman Leong said that the strengthening did not only occur in the rupiah, but also in other currencies because the United States (US) dollar weakened again.

According to Lukman, the movement of the rupiah in trading on Tuesday, November 28 will strengthen against the US dollar which has weakened again after lower-than-expected manufacturing and home sales data.

Apart from that, the movement of the rupiah will still be influenced by external sentiment, namely the views of investors who are waiting for speeches from several Fed officials and anticipating US PCE inflation data.

Meanwhile, according to Lukman, domestic sentiment is still related to Indonesian inflation data which will be released on Friday and there is no important domestic economic data before that.

"The rupiah is expected to strengthen against the US dollar," explained Lukman to VOI, Tuesday 28 November.

Lukman estimates that the rupiah has the potential to strengthen in the price range of IDR 15,400 per US dollar - IDR 15,550 per US dollar in trading on Tuesday, November 28.