Rupiah is Potentially Continue to Strengthening, Post Interest Rate Cut

Rupiah (photo: dock. Antara)

JAKARTA - The rupiah exchange rate on Monday, September 23, 2024, is expected to strengthen against the United States (US) dollar.

Financial and Commodity Market Observer Ariston Tjendra said that market sentiment towards risk looks positive this morning. The Asian stock index is in the green area.

"The market seems to still respond positively to the US benchmark interest rate cut last week and hopes for the next cut," he told VOI, Monday, September 23.

In addition, Ariston said that the Rupiah also still has the potential to get a strengthening boost from this market sentiment.

According to Ariston, BI's stance of opening up interest rate cuts in the future following the cuts made by the US Central Bank provides positive sentiment.

"Interest rate cuts can stimulate the Indonesian economy," he said.

Meanwhile, Currency and Commodity Observer Lukman Leong said that with the absence of important economic data from both domestic and foreign, the Rupiah is expected to consolidate against the US dollar with a tendency to weaken limitedly.

"The US dollar was seen to experience a slight technical rebound this morning," he said.

Lukman said investors tend to wait and see in anticipation of Powell's speech and US PCE inflation data on Thursday and Friday this week.

Ariston estimates that the rupiah movement on Monday, September 23 has the potential to strengthen against the US dollar towards Rp15,080 with potential resistance in the range of Rp15,200.

Meanwhile, Lukman estimates that the rupiah will move in the range of IDR 15,100-IDR 15,200 per US dollar.

Quoting Bloomberg, the Rupiah exchange rate on Friday, September 20, 2024, the spot rupiah rate closed up 0.58 percent to IDR 15,150 per US dollar. Likewise, the rupiah exchange rate at Bank Indonesia (BI) Jakarta Interbank Spot Dollar Rate (Jisdor) closed up 1.22 percent to IDR 15,100 per US dollar.