Rupiah Opens To Strengthen To Rp16,166 Per US Dollar, Predictions Weaken Until The End Of The Year

Rupiah and US Dollars (Photo: dock. Antara)

JAKARTA - The Rupiah exchange rate in trading this morning opened higher by Rp69 or 0.43 percent to Rp16,166 per US dollar.

Financial Market and Commodity Observer Ariston Tjendra said that the movement of the rupiah has the potential to weaken against the United States (US) dollar on Monday, December 30.

According to Ariston, the weakening movement of the rupiah towards the end of the year was inevitable because the sentiment that strengthened the US dollar towards the end of the year had not disappeared and no positive sentiment had reversed it.

Meanwhile, in terms of domestic sentiment, Ariston said that the market is quite skeptical of Indonesia's economic growth next year, such as a decrease in middle class purchasing power, 12 percent VAT, etc.

"On the other hand, the US economy looks solid enough to reduce the chances of cutting the benchmark interest rate," he told VOI, Monday, December 30.

In addition, Ariston conveyed that the expectations of Trump's economic program that could lead to trade wars and geopolitical conflicts are still high as well as encouraging market participants to enter US dollar assets as safe assets.

Therefore, Ariston estimates that by the end of the year the movement of the rupiah can last above the level of Rp. 16,100 per US dollar.

Quoting Bloomberg, the Rupiah exchange rate on Friday, December 27, 2024, the rupiah exchange rate on the spot market closed down 0.28 percent at the level of Rp. 16,235 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.26 percent to a price level of Rp. 16,251 per US dollar.