Rupiah Potentially Weakens Driven By Solid US Labor 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 Monday, January 13.

Ariston said the US dollar index scored a new high in two years in the range of 109.96 on Friday and this morning moved in the range of 109.65.

"The increase in the dollar index was supported by US Non Farm Payrolls labor data in December which was released last Friday night, 256,000 vs 212 thousand," he told VOI, Monday, January 13.

According to Ariston, the unemployment rate also fell to 4.1 percent compared to the previous 4.2 percent.

Ariston said that solid labor data could trigger the Fed to refrain from cutting its benchmark interest rates again so that this expectation prompted an increase in US dollars.

Therefore, he estimates that the movement of the rupiah on Monday, January 13, has the potential to weaken to the level of Rp. 16,250 per US dollar with potential support in the range of Rp. 16,150.

Quoting Bloomberg, the Rupiah exchange rate on Friday, January 10, 2024, the rupiah exchange rate in the spot market closed higher by 0.17 percent at the level of Rp. 16,190 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed up 0.27 percent to a price level of Rp. 16,194 per US dollar.