Observers Say Rupiah Movements Will Remain Under Pressure In The Near Future

Illustration. (Photo: Doc. Antara)

JAKARTA - President Commissioner of HFX International Futures Sutopo Widodo estimates that the movement of the rupiah will remain under pressure due to the strengthening of the United States (US) dollar and global economic uncertainty.

"Rupiah can fluctuate between Rp. 15,800 and Rp. 16,000 per US dollar in the near future," he explained to VOI, Friday, November 22.

Meanwhile, Sutupo said that the medium to long-term prospects for the rupiah would depend on several factors, including the resolution of geopolitical tensions, domestic economic performance, and Bank Indonesia's monetary policy.

"If global economic conditions are stable and domestic policies support growth, Rupiah can experience strengthening," he said.

Sutopo conveyed that the prospects for the future Rupiah and sentiment affecting its movement could be analyzed through factors such as US dollar powers, driven by US economic policy and interest rate decisions, had a significant impact on the Rupiah.

"The strong US dollar caused the Rupiah to weaken," he said.

Sutopo added that the ongoing conflict, such as the Russia-Ukraine war, created global economic uncertainty, prompting investors to switch to safe haven currencies such as the US dollar, which could weaken the Rupiah exchange rate.

For information, at the end of trading Friday, November 22, the rupiah in the spot market closed at the level of IDR 15,875 per US dollar, or strengthened 0.35 percent compared to the previous day which was at IDR 15,931 per US dollar.