The Rupiah Is Projected To Strengthen Along With The Weakening Of The US Dollar

Illustration (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate on Wednesday 29 November 2023 is expected to continue strengthening due to the weakening of the US dollar and the dimming prospect of an increase in American interest rates.

Quoting Bloomberg, on the Rupiah exchange rate on Tuesday, November 28, the spot rupiah exchange rate strengthened slightly by 0.38 percent to IDR 15,435 per US dollar.

Meanwhile, the Jisdor rupiah exchange rate strengthened slightly by 0.50 percent daily to a price level of IDR 15,450 per US dollar.

Valbury Asia Futures Research & Education Coordinator Nanang Wahyudin said that the movement of the Rupiah showed good results in 2 consecutive trading sessions this week in line with the weakening of the dollar and the dimming prospect of an increase in American interest rates.

"As well as the prospect of an increase in American interest rates fading and rumors emerging that the Fed is getting closer to cutting interest rates in the first half of next year," he explained to VOI, Wednesday, November 29.

Nanang added further pressure to the dollar index last night which fell to its lowest level in 3.5 months, and at the same time recorded its worst monthly result in the last 1 year.

Apart from that, according to him, the attitude of market players will consider a number of American economic catalysts released this week, whether data on American economic growth is still accelerating in the third quarter, from 4.9 percent to an estimated growth of 5.0 percent.

Nanang said that the publication of the Core PCE Price Index data for October, which is estimated to fall 0.3 percent to 0.2 percent on a monthly basis, could be a guide for investors that the Fed at its December meeting will still maintain interest rates at 5.50 percent.

As for the movement of the Rupiah, which managed to penetrate the previous day's lowest level at IDR 15,479 per US dollar, it provided room to test the important support area of ​​IDR 15,384 per US dollar. If this is successfully penetrated and maintained below this area, the rupiah has the potential to continue strengthening towards IDR 15,280 per US dollar.