Rupiah Predicted To Reach IDR 16,000 Per US Dollar

Illustration - Officers calculate US dollar bills at BNI KC Mega Kuningan, Jakarta, Thursday (21/7/2022). BETWEEN PHOTOS/Rivan Awal Lingga/tom/pri

JAKARTA - The rupiah exchange rate will still have the potential to weaken next week in line with the strengthening of the US dollar. For information, based on Bloomberg data, the rupiah closed down 0.36 percent to IDR 15,873 per US dollar on Friday, October 20 trading. Meanwhile, at the Jakarta Interbank Spot Dollar Rate (JISDOR) benchmark rate, Bank Indonesia, the rupiah exchange rate was at IDR 15,856 per US dollar, weakening compared to the previous trade of IDR 15,838 US dollars. HFX International President Commissioner Berjangka Sutopo Widodo said the strengthening of the stronger dollar due to his hedging status was amid geo-political uncertainty and longer high interest rates, as well as high bond yields, putting pressure on the rupiah. "The dollar index is stable above 106 on Friday ’at as investors continue to assess the prospects for the Federal Reserve's monetary policy in connection with the latest statement by Fed Chairman Jerome Powell," he explained Sunday, October 22. Sutopo said the market estimates that the central bank will maintain a stable interest rate at a meeting in November. Meanwhile, the dollar lags behind the Treasury yield increase, with a 10-year US bond yield that had reached 5 percent for the first time since 2007. According to Sutopo, the increase in BI's reference interest group to maintain the exchange rate has not been seen because the current basic effect is not only on inflation but because of sentiment on geopolitical geopolitical modes that make market modes to risk-offs. "Next week's market will pay attention to PCE data from one of the Fed's favorite indicators to assess future policies," he said. Sutopo estimates that next week's rupiah movement will still weaken, but in the range of Rp. 15,700 – Rp. 16,000 per US dollar.