Market Await US Economic Data, Rupiah Potentially Strengthens

Illustration (Photo: Doc Antara)

JAKARTA - The rupiah exchange rate in trading Thursday, August 29, 2024 is expected to move higher against the United States (US) dollar.

Financial Market and Commodity Observer Ariston Tjendra said he saw the movement of the rupiah compared to the US dollar which has not moved too far lately despite pressure from the US dollar due to geopolitical tensions in the Middle East, but the rupiah still received support from expectations of cutting the US benchmark interest rate in September.

Ariston said, tonight and tomorrow night, market participants are looking forward to US economic data which will confirm the expectations of the cuts, especially the amount of cuts, namely GDP data and data on the US inflation indicator PCE Price Index.

"The expectation of this cropping still puts pressure on the US dollar," he told VOI, Thursday, August 29.

Therefore, Ariston said that with the current pattern of rupiah movement and sentiment of cuts, the rupiah still has the opportunity to strengthen against the US dollar today.

Ariston estimates that the movement of the rupiah on Thursday, August 29 has the potential to strengthen towards Rp. 15,380 with a potential resistance in the range of Rp. 15,460.

Quoting Bloomberg, the Rupiah exchange rate on Wednesday, August 28, 2024, the rupiah spot exchange rate closed up 0.47 percent to the level of Rp15,422 per US dollar.

Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed higher by 0.21 percent to a price level of IDR 15,476 per US dollar.