The rupiah rose on the back of the weakening US dollar index

The weakening of the US dollar was influenced by inflation data from the United States (US), both from the consumer price index (CPI) and the producer price index (IHP), which continued to decline

Jakarta (Armfalcon.com) – The rupiah exchange rate (exchange rate) that was transacted between banks in Jakarta at the beginning of the week rose on the back of the weakening US dollar index.

On Friday morning, the rupiah opened up 75 points or 0.51 percent to a position of Rp. 14,671 per US dollar compared to the position at the previous close of Rp. 14,746 per US dollar.

“The US dollar continues to weaken against other currencies, this is reflected in the continued weakening of the US dollar index (DXY) which is currently around 101,” said Rully Arya Wisnubroto, economist at Mirae Asset Sekuritas, when contacted in Jakarta, Friday.

The weakening of the US dollar was influenced by inflation data from the United States (US), both from the consumer price index (CPI) and the producer price index (IHP), which continued to decline.

US PPI for final demand fell 0.5 percent last month. In the 12 months to March, PPI increased 2.7 percent. It was the smallest year-on-year increase since January 2021 and follows February’s 4.9 percent rise.

Meanwhile, US CPI inflation data on Wednesday (12/4/2023) reached 5.0 percent year-on-year in March, down from 6.0 percent in February.

Rully said that the declining inflation data gave hope that in the near future the US Central Bank or The Fed would stop raising interest rates.

Meanwhile from within the country, the market is still waiting for data on Indonesia’s trade balance to be released on Monday (17/4/2023), with the possibility that there will still be a quite high surplus, which is estimated at around US$4.8 billion.

He predicts that the rupiah has the opportunity to move in the range of IDR 14,685 per US dollar to IDR 14,745 per US dollar.

On Thursday (13/4/2023), the rupiah closed up sharply by 134 points or 0.90 percent to the position of IDR 14,746 per US dollar compared to the position at the previous close of trading at IDR 14,880 per US dollar.

Read also: Dollar falls in Asia, cooling US inflation lifts expectations of Fed break
Also read: Rupiah strengthened 75 points to IDR 14,671 on Friday
Also read: The rupiah closed higher after the release of the minutes of the US FOMC meeting

source: www.antaranews.com

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