JAKARTA - The rupiah exchange rate in trading Wednesday, May 28 is expected to fluctuate against the United States (US) dollar.
To note, citing Bloomberg, on Tuesday, May 27, the rupiah spot exchange rate closed down 0.23 percent to the level of Rp. 16,287 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed lower by 0.29 percent to a price level of Rp. 16,255 per US dollar.
Bank Permata chief economist Josua Pardede said yesterday that the US dollar was traded stronger against global currencies after US consumer confidence improved significantly in May 2025.
"This increase is the highest since 2021. The improvement in consumer confidence was mainly driven by the US-Chingkok trade agreement in the middle of the month," he said in his statement, Wednesday, May 28.
Josua said consumer confidence data reflects the easing of concerns about trade wars at the consumer level.
In addition, optimism at the consumer level also supports the US stock market, in line with DJIA, S&P500, and NASDAQ, an increase of 1.78 percent, 2.05 percent, and 2.47 percent, respectively.
"UST's request has also increased, marked by a decrease in the 10 year SBN yield by 7bps to 4.44 percent," he said.
Meanwhile, he said that one of the Fed's officials, Neel Kashkari, stated that he supports maintaining policy interest rates until uncertainty in trade deals is reduced, hinting at a less dovish stance from Fed.
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Josua said the Rupiah exchange rate weakened in Tuesday's trading, driven by the strengthening of the US dollar exchange rate against global currencies.
"The strengthening of the US Dollar exchange rate is supported by news about the possibility of the Japanese government intervening in the financial market after," he explained.
He estimates that the rupiah will fluctuate in trading on Wednesday, May 28, 2025, in the price range of IDR 16,225 - IDR 16,350 per US dollar.
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