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 Thursday, February 20.
Ariston said that the release of the Fed's policy meeting minutes in January this morning showed the central bank's desire to hold the benchmark interest rate even longer while waiting for the latest data such as inflation, labor and the impact of Trump's tariff policy.
"The Fed's officials hinted at its difficulty in reducing inflation to a target of 2 percent," he told VOI, Thursday, February 20.
In addition, according to him, Trump's tariff policy is still providing negative sentiment to the market this morning where the Asian stock index seemed to be moving negatively this morning.
Domestically, Ariston said the market began to speculate on cutting the BI benchmark interest rate due to low inflation and reducing the state budget that reduces local businesses.
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"This can put pressure on the rupiah," he explained.
He estimates that the movement of the rupiah on Thursday, February 20, has the potential to weaken against the US dollar towards the level of Rp. 16,380 per US dollar with the potential for support to the level of Rp. 16,290 per US dollar.
Quoting Bloomberg, the Rupiah exchange rate on Wednesday, February 19, 2025, the rupiah exchange rate on the spot market closed down 0.29 percent at the level of Rp. 16,325 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.5 percent to a price level of Rp. 16,275 per US dollar.
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