Market Beware Of Trump's Policy, Rupiah Potentially Weakening

Rupiah (photo: dock. Antara)

JAKARTA - The rupiah exchange rate in trading Monday, November 11, 2024 is expected to weaken against the United States (US) dollar.

Financial Market and Commodity Observer Ariston Tjendra said the movement of the US dollar at the end of last week closed higher after being under pressure for cutting the US Central Bank interest rate by 25 basis points on Friday morning.

"Data on the level of confidence of US consumers above market predictions, 73 vs 70, which was released on Friday night as well as opportunities for increased inflation and trade wars during the Trump administration, are pushing for a re-enhancing of the US dollar," he told VOI, Monday, November 11.

Ariston said that the movement of the rupiah which has strengthened quite sharply over the past 2 days may be able to get a pressure reaction today because the market still has not received a clear signal from the Fed whether it will continue to cut its interest rates.

In addition, Ariston said the market is also still wary of Trump's future policies. Therefore, he estimates that the movement of the rupiah on Monday, November 11 has the potential to weaken against the US dollar towards Rp. 15,700 with the potential for support in the range of Rp. 15,630.

Quoting Bloomberg, the Rupiah exchange rate on Friday, November 8, 2024, the rupiah spot exchange rate was closed up 0.43 percent to the level of Rp15,672 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia (BI) closed higher by 0.60 percent to a price level of Rp15,671 per US dollar.