Market Still Watching The Fed's Projection, Rupiah Weakened Early In The Week

Documentation. The officer counts Rupiah denominations in Valuta Inti Prima (VIP) (Muhammad Adimaja/Antara)

JAKARTA - The rupiah exchange rate transacted between banks in Jakarta at the beginning of the week weakened as market players were still closely watching the projection of an increase in interest rates by the United States central bank The Federal Reserve. At 10:00 WIB, the rupiah weakened 50 points or 0.35 percent. to the position of Rp. 14,425 per US dollar compared to the position at the close of the previous trade of Rp. 14,375 per US dollar. the study was conducted in Jakarta, reported by Antara, Monday, June 21. The Fed at a meeting of the Federal Open Market Committee (FOMC) last week stated that interest rates would increase twice in 2023 which then raised concerns about tapering (reduced bond purchases by the Fed). Federal Reserve Bank St. Louis James Bullard also said that the US central bank has started discussions about easing its bond-buying program during the pandemic. Bullard also said that the Fed's change in attitude is a natural response to faster-than-expected economic growth and inflation. The dollar index measures strength The dollar against other major currencies is currently at 92.26, up from its previous closing position of 92.225. Meanwhile, the 10-year US bond yield is currently at 1.404 percent, down from the previous close of 1.45 percent. On Friday (18/6), the rupiah closed down 20 points or 0.14 percent to Rp14,375 per US dollar compared to the position at the previous close of Rp14,355 per US dollar.