Rupiah Forecast Analysts Will Tend To Strengthen Limited

Illustration (Photo: Doc. Antara)

JAKARTA - Senior Analyst Lukman Leong estimates that the rupiah will be flat with a limited tendency to strengthen, supported by requests for Government Securities (SBN).

"However, the overall investor is still waiting and see FOMC (The Federal Open Market Committee) next week," Lukman said as quoted by Antara, Wednesday, June 7.

According to him, SBN is in great demand because of the expectations of strengthening the rupiah in the future and the hope of lowering interest rates by Bank Indonesia (BI) after data on inflation in May 2023 showed inflation had entered BI's target.

"The decline in interest rates will lower bond yields and increase prices. Next week, investors are looking forward to the Fed's interest rate decision," he said.

During this week or two, he continued, the Fed's interest rate expectations varied widely, so investors wanted clarity from the Fed.

US economic data was previously said to indicate a potential interest rate hike, but was denied by one of the Fed's officials.

"So it's very confusing, investors avoid uncertainty with wait and see," he said.

At the opening of trading today, the rupiah exchange rate transacted between banks on Wednesday morning slightly strengthened 0.02 percent or 3 points to Rp14,857 per US dollar from the previous Rp14,860 per US dollar.