Thursday's Rupiah Is Predicted To Strengthen Limited Driven By Global Sentiment

Illustration. (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate in Kamia's trading, March 20, is estimated to move higher against the United States (US) dollar.

To note, citing Bloomberg, on Wednesday, March 19, the rupiah spot exchange closed down 0.63 percent to the level of Rp. 16,531 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.58 percent to a price level of Rp. 16,528 per US dollar.

Financial Market and Commodity Observer Ariston Tjendra conveyed that the results of the US Central Bank meeting this morning put pressure on the US dollar, as well as providing positive sentiment to the stock market.

According to him, because the US Central Bank is still opening the option of cutting the benchmark interest rate twice this year in the midst of tariff policies that can increase inflation and trigger trade wars.

But on the other hand, Ariston expressed market concerns because Trump's tariff policy could still put pressure on the risk asset market.

"Israel's ongoing attack on Gaza and the prospect of ending the fading war in Ukraine will also provide negative sentiment to risky assets," he told VOI, Thursday, March 20.

Ariston said the price of gold safen assets was still soaring, forming a new high this morning at around 3,056 US dollars per troy ounce.

Therefore, he estimates that the effect of the US Central Bank meeting results could encourage the strengthening of the rupiah against the US dollar to the range of Rp. 16,480.

"But in terms of negative sentiment that still overshadows market participants, it will still push the weakening of the rupiah to the range of Rp. 16,580-Rp. 16,600," he explained.

Meanwhile, Doo Financial Futures analyst Lukman Leong said that today's Rupiah movement will depend on the results of the Federal Open Market Committee (FOMC).

"The Fed is expected to have a dovish tone and maintain interest rates, this will press the US dollar," he told VOI, Wednesday, March 19.

However, Lukman said that the movement of the rupiah is still difficult to strengthen considering that domestic sentiment is still gloomy. However, if the Fed has a hawkish tone, the rupiah has the potential to weaken again.

He conveyed that the movement of the rupiah on Thursday, March 20, has the potential to rebound to the US dollar at the level of Rp. 16,450 per US dollar - at Rp. 16,550 per US dollar.