US Dollar Reaches IDR 16,300, BI Boss Values Rupiah Is Better Than Other Countries

Illustration (Photo: Doc. ANTARA)

JAKARTA - The movement of the rupiah exchange rate has reached the level of Rp. 16,300 against the US dollar. Quoted from RTI data, Friday, June 14, the rupiah exchange rate is at the highest level of Rp. 16,374 per US dollar and the lowest is Rp. 16,347 per US dollar.

Responding to this, the Governor of Bank Indonesia (BI) Perry Warjiyo said that the rupiah exchange rate against the US dollar was lower than other countries.

"Rupiah (the rupiah exchange rate against the US dollar) Rp16,300 please look at the end of last year, Indonesia is very low and when compared to other countries. Compare it with South Korea, compare it with the Philippine Peso, Baht Thailand, Yen Japan. Our depreciation is low and stable," he said at the Presidential Palace Complex, Central Jakarta, Friday, June 14.

Perry assessed that currently the rupiah exchange rate is one of the most stable and best currencies in the world.

In the future, he said, the central bank will continue to stabilize exchange rates such as intervention, withdrawal of foreign portfolios into the country until the withdrawal of foreign exchange of export products (DHE) of natural resources (SDA) goes well.

Previously, the Director of PT Profit Forexindo Berjangka Ibrahim Assuaibi said that the US central bank now only sees the possibility of a one-time drop in interest rates this year, down from the previous estimate three times.

"Some policymakers even called for no lower interest rates this year due to high inflation," he explained in his official statement quoted Friday, June 14.

Ibrahim said the Fed also raised inflation forecasts for 2024. However, the Fed's comments were preceded by inflation of the consumer price index which showed that inflation was slightly lower than expected in May.

According to him, the figure hit the dollar and lowered the yield of Treasury, because traders received a disinflation narrative.

But the dollar stabilized after the Fed's comments, given the higher and longer interest rates are likely to benefit the greenback.

Ibrahim conveyed that this kind of scenario is also a bad sign for a risk-driven currency.

The PPI data, which will be released on Thursday, is expected to provide more clues regarding inflation.

In addition, the US central bank is likely to keep interest rates stable, but is expected to reduce some of the bond purchases in an effort to tighten policies. Although tighter monetary conditions are expected to provide support for its currency.

Ibrahim estimates that the rupiah will fluctuate but close higher in today's trading in the price range of Rp. 16,230-Rp. 16,310 per US dollar.