JAKARTA - The rupiah exchange rate on Tuesday, January 20, 2026 is expected to strengthen against the US dollar.
To note, quoting Bloomberg, on Monday, January 19, the spot rupiah exchange rate closed down 0.40 percent to Rp16,955 per US dollar.
Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.33 percent to the price level of IDR16,935 per US dollar.
Doo Financial Futures analyst, Lukman Leong, assessed that the rupiah has the potential to strengthen against the US dollar which is again pressured by the sale of US bonds by investors.
"The rupiah has the potential to strengthen against the US dollar which is again pressured by the sale of US bonds by investors," he told VOI, Tuesday, January 20.
However, he added that the strengthening is expected to be limited because investors are still waiting and seeing while waiting for the results of the BI RDG tomorrow.
"However, the strengthening is expected to be limited given that investors are still waiting and seeing for RDGBI tomorrow," he explained.
Lukman estimates that the movement of the rupiah on Tuesday, January 20, 2026 will be in the range of Rp16,900-Rp17,000 per US dollar.
Meanwhile, money market observer Ibrahim Assuaibi explained that from the external side, the United States economic data showed that the labor market conditions were still quite solid.
He said this situation raises doubts among market participants about the Federal Reserve's plan to cut interest rates twice this year.
"Fed funds futures are now pricing in a delay of the next rate cut to June and September from the previous forecast in January and April," he said in a statement, Monday, January 19.
According to him, this strengthens the view that the US central bank has the potential to maintain high interest rates for a longer period of time.
Meanwhile, from the Asian region, Ibrahim said the data released on Monday showed that China's economy grew by 5.0 percent throughout last year and this achievement was in line with the government's target, driven by an increase in global demand for Chinese goods that reached a record high, to cover the weakness of domestic consumption.
Ibrahim predicted that the rupiah would move fluctuatio on Tuesday, January 20, 2026 in the price range of IDR 16,950 - IDR 16,980 per US dollar.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
