The Weakening Of Rupiah Potentially Continues, Driven By Positive US Economic Data

Illustration (Photo: Doc. ANTARA)

JAKARTA - Financial Market Observer and Commodity Ariston Tjendra said that the movement of the rupiah has the potential to weaken against the United States (US) dollar on Friday, March 21.

Ariston said the US dollar index this morning moved higher to 103.81 when compared to yesterday's movement at 103.30.

"The rise in the Dollar index is supported by US economic data released last night, which results better than market expectations," he told VOI, Friday, March 21.

Ariston said that the weekly unemployment allowance claims released showed that they were at the level of 223,000 or lower than expected, which was 224 thousand, indicating a decrease in the unemployment rate.

In addition, manufacturing index data in the Philadelphia area was recorded at 12.5, higher than expectations of only 8.8.

Meanwhile, the existing housing sales data was recorded at 4.26 million units, exceeding the expectations of 3.95 million units.

Ariston said in addition, the market was still worried about Trump's tariff policy that pushed the market into safe assets in gold and US dollars.

"This issue is still not gone. Plus new issues about Israeli and US attacks on regions of other countries and the prospect of peace between Ukraine and Russia that are still invisible," he explained.

He conveyed that the movement of the rupiah on Friday, March 21, has the potential to weaken against the US dollar to the area at the level of Rp. 16,550 per US dollar with potential support at Rp. 16,430 per US dollar.

Quoting Bloomberg, on Thursday, March 20, the rupiah spot exchange rate was closed up 0.28 percent to the level of Rp. 16,485 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed up 0.28 percent to a price level of Rp. 16,481 per US dollar.