The Fed's Interest Rate Cut Expert Is Getting Higher, Rupiah Has The Potential To Strengthen Again

Rupiah (Photo: Antara)

JAKARTA - The rupiah exchange rate in trading Tuesday, September 17, 2024 is expected to move higher against the United States (US) dollar.

Financial Market and Commodity Observer Ariston Tjendra said this morning the position of the US $ 100.70 index was weaker than the position at the weekend of 101.22.

"This could indicate a high market expectations for cutting the US benchmark interest rate which will be announced on Thursday morning this week," he told VOI, Tuesday, September 17.

Ariston conveyed that the Tool FedWatch market CME Survey also shows that the greater chance of cutting, namely 50 basis points, is getting higher by 67 percent compared to previous weeks which showed only about 30 percent of opportunities.

According to Ariston, the higher chance of cutting is likely due to US inflation data released last week showing a decline compared to the previous month and this also put pressure on the US dollar.

Ariston estimates that the movement of the rupiah on Tuesday, September 17 has the potential to strengthen against the US dollar towards Rp15,350 with the potential for resistance in the range of Rp15,450.

Quoting Bloomberg, the Rupiah exchange rate on Friday, September 13, 2024, the rupiah spot exchange rate was closed up 0.24 percent to the level of Rp15,401 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia (BI) closed higher by 0.10 percent to a price level of Rp15,405 per US dollar.