Rupiah is Potentially Weakening, Driven By US Inflation Data Release

Dollars and rupiah (photo: Antara)

JAKARTA - The rupiah exchange rate on Monday, October 14, 2024, is expected to weaken against the United States (US) dollar.

Financial and Commodity Market Observer Ariston Tjendra said that the US dollar index appeared to have risen again above the 103 level, whereas at the end of last week, it was still in the range of 102.90.

"The strengthening of the US dollar can be linked to the release of US inflation data for September last week which showed that US inflation is still difficult to fall, thus reducing expectations of further major cuts," he told VOI, Monday, October 14.

In addition, Ariston said that the still hot conditions in the Middle East also encouraged market players to take positions in safe assets such as gold and the US dollar.

According to Ariston, this week, the market is waiting for the truth of the rumors of additional stimulus from China. China's additional stimulus policy could provide positive sentiment to risky assets including the rupiah.

In addition, the market is also waiting for US economic developments from US manufacturing and retail sales data to be released to confirm the direction of US monetary policy going forward.

Ariston estimates that the rupiah movement on Monday, October 14 has the potential to weaken against the US dollar towards IDR15,650 with potential support in the range of IDR15,550.

Quoting Bloomberg, the Rupiah exchange rate on Friday, October 11, 2024, the spot Rupiah rate closed up 0.64 percent to IDR15,578 per US dollar. Likewise, the Jakarta Interbank Spot Dollar Rate (Jisdor) Bank Indonesia (BI) rupiah exchange rate closed up 0.30 percent to IDR15,609 per US dollar.