JAKARTA - The Rupiah exchange rate weakened against the United States (US) dollar to RP16,054 per US dollar. Rupiah weakened 59 points or 0.37 percent on Monday morning, May 27.
Financial Market Observer and Commodity Ariston Tjendra said the movement of the rupiah exchange rate has the potential to weaken against the US dollar this week.
According to Ariston Rupiah, it is still possible to be under pressure against the US dollar today because the minutes of the US central bank's monetary meeting released last week show that Fed officials are still opening up options for this year's benchmark interest rate hikes if US inflation points to another increase.
"This is different from what was said by US Central Bank Governor Jerome Powell after a previous US central bank meeting that the increase in interest rates is not this year's discourse," he told VOI, Monday, May 27.
Ariston said this week, market participants will confirm the attitude of the US Central Bank officials with data on US Core PCE Price Index inflation which will be released this Friday.
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Therefore, Ariston said that as long as there are no new indications of the opportunity to cut the US benchmark interest rate, the rupiah will still consolidate and potentially weaken US dollars this week.
Ariston estimates that the movement of the rupiah on Monday, May 27, 2024, has the potential to weaken towards Rp. 16,050 with potential support in the range of Rp. 15,990.
Quoting Bloomberg, the Rupiah exchange rate on Wednesday, May 22, 2024, the rupiah spot exchange rate was closed slightly up 0.02 percent to the level of Rp15,995 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed higher by 0.18 percent to a price level of Rp15,995 per US dollar.
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