Today's Rupiah Potentially Weakens Driven By Market Concerns

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, February 3.

Ariston expressed market concerns over implementing the policy of increasing President Trump's import rates to Mexico, Canada, and China on February 4 tomorrow to encourage market participants into safe assets today.

"The US dollar index seems to have skyrocketed back to 109.70 from the previous 108.50 range," he told VOI, Monday, February 3.

Ariston said the Asian stock index was also seen under pressure this morning and the market is concerned that this will trigger retaliation from countries whose rates are raised and will lead to trade wars.

According to Ariston, the prices of consumer goods in the US can also increase because the prices of goods supplied by the three countries have increased due to new import rates.

Ariston said the rising inflation would encourage the Fed to hold back the cutting of the benchmark interest rate and expectations also boosted the strengthening of the US dollar.

He estimates that the movement of the rupiah on Monday, February 3, has the potential to weaken against the US dollar towards the level of Rp. 16,400 per US dollar with the potential for support to the level of Rp. 16,250 per US dollar.

Quoting Bloomberg, the Rupiah exchange rate on Friday, January 31, 2024, the rupiah exchange rate on the spot market closed lower by 0.30 percent at the level of Rp. 16,304 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.32 percent to a price level of Rp. 16,312 per US dollar.