US Dollar Still Strong, Rupiah Potentially Continues Weakening

Illustration (Photo: Doc. ANTARA)

JAKARTA - The rupiah exchange rate on Thursday, March 28, 2024, is expected to continue to weaken the United States (US) dollar.

Quoting Bloomberg, the Rupiah exchange rate on Wednesday 27 March, the rupiah spot exchange rate was closed lower by 0.41 percent Rp15,858 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed lower by 0.35 percent to a price level of IDR 15,853 per US dollar.

Director of PT Profit Forexindo Berjangka Ibrahim Assuaibi said that most traders remained biased against the dollar after the dovish signal from Swiss National Bank and the Bank of England set a greenback as the only currency with high returns and low risk.

"Anticipation of the main PCE price index data which is a measure of the Fed's choice of inflation and comments from high-ranking Fed officials this weekend also pushed the flow of funds to the dollar, especially as traders waited for more signs regarding the decline in US interest rates," he said in his statement quoted Thursday, March 28.

From an internal point of view, economists assess that the government, which will be led by Prabowo Subianto-Gibran Rakabuming Raka, needs to formulate a number of strategies in order to achieve the economic growth target of 6 percent-7 percent.

To pursue the economic growth target of 6 percent-7 percent, it is not enough if the next government only continues.

Previously, the idea that Prabowo-Gibran had always conveyed during his campaign was sustainability, namely continuing the programs or strategies of the Joko Widodo (Jokowi) government that had been running so far.

Meanwhile, many homework in the economic sector needs improvement. The reason is, during the Jokowi era government, economic growth was stagnant at the level of 5 percent, even with a downward trend.

Ibrahim said, if the narrative continues, it does not mean that it cannot be improved, there are things that need to be fixed immediately.

One sector that needs to be addressed is the food sector, the phenomenon of soaring food prices in the last few months shows that Indonesia's food security is still very weak.

According to Ibrahim, the current increase in food prices is indeed influenced by El Nino's factors.

But beyond that, other aspects that also affect food prices should be controlled by the government.

"The point is, if the economy wants to grow better, one must be encouraged, one of which is food. This is not enough just to continue, but the upcoming government must be repaired," he explained.

Ibrahim estimates that the rupiah will fluctuate but close lower on trading Thursday, March 28 in the price range of IDR 15,840 - IDR 15,900 per US dollar.