Today The Rupiah Exchange Value Against Dollars Is Predicted To Strengthen

Illustration of money (ANTARA)

JAKARTA - The rupiah exchange rate in trading Friday, February 23, 2024, is expected to move again higher against the United States (US) dollar.

Quoting Bloomberg, the Rupiah exchange rate on Thursday, February 22, the rupiah spot exchange rate was closed up 0.29 percent Rp15,590 per US dollar. Similarly, Jisdor's rupiah exchange rate closed up 0.17 percent to a price level of Rp15,630 per US dollar.

Director of PT.Laba Forexindo Berjangka Ibrahim Assuaibi conveyed that the CME Fedwatch tool shows traders estimate a 53.6 percent chance for a 25 basis point interest rate drop in June, and a 28.7 percent chance to keep interest rates stable. The latter is up from the 19.7 percent chance seen last week.

In addition, investors are waiting to see if the Chinese government will launch further stimulus measures. A number of support measures from the Chinese government have pushed for increased commodities in recent sessions.

"But the market is now waiting to see if the government will provide more support, considering that China's economy is experiencing weak growth for three years," he said in his statement quoted on Friday, February 23.

From an internal point of view, Bank Indonesia (BI) estimates that Indonesia's economy will grow better than expected, which is in the range of 4.7-5.5 percent this year. In the fourth quarter of 2023, growth was recorded at 5.04 percent (yoy), an increase from 4.94 percent (yoy) in the previous quarter, bringing the overall year to 5.05 percent (yoy).

This prospect is influenced by the improvement in exports in line with the increase in world economic growth and it is still better for domestic demand to be supported by the positive confidence of economic actors.

Meanwhile, Bank Indonesia will continue to strengthen the policy mix, especially through macroprudential policies and payment system policies, as well as synergizing with the Government's fiscal stimulus to encourage economic growth, especially in terms of domestic demand.

Previously, Indonesia's economic growth in the fourth quarter of 2023 was mainly supported by increased exports, increased building investment, and positive impacts on the implementation of the General Election.

Based on the business field (LU), economic growth in 2023 was supported by LU related to mobility such as Big Trade and Eceran.

Transportation and warehousing, Information and Communication, as well as the provision of Accommodation and Drinking. Spatially, strong national economic growth occurred in many parts of Indonesia with the highest growth performance recorded in the Sulawesi-Maluku-Papua (Sulampua) region, followed by Kalimantan and Java.

Ibrahim estimates that the rupiah will fluctuate but close higher on Friday, February 23 trading in the price range of IDR 15,550- IDR 15,620 per US dollar.