The rupiah strengthened amid expectations of lower US data releases

Jakarta (Armfalcon.com) – The rupiah exchange rate (exchange rate) being traded between banks in Jakarta ahead of the weekend strengthened amid market expectations of the release of lower United States (US) employment data.

On Thursday, the rupiah closed up 20 points or 0.13 percent to the position of Rp. 14,912 per US dollar compared to the position at the close of the previous trade, which was Rp. 14,932 per US dollar.

“The market is still waiting for the non-farm payrolls data or non-farm payrolls The US has lower expectations,” said Mirae Asset Sekuritas Senior Economist Rully Arya Wisnubroto when contacted in Jakarta, Thursday.

In addition, he said that the Rupiah is also currently being influenced by the publication of national employment data Automatic Data Processing (ADP) US lower than expected.

Also read: The rupiah weakened due to fears of a global economic slowdown

The report on Wednesday (5/4) noted private employment increased by 145,000 last month, while economists surveyed by Reuters estimates private employment increased by 200 thousand.

The data comes after Tuesday’s report (4/4) showing a decline in job vacancies for February and after Monday’s weak US manufacturing survey (3/4) from Institute for Supply Management (ISM), which also shows a weak employment component.

Another report on Wednesday (5/4) also indicated continued economic weakness, this time in the services sector. The industry slowed more than expected in March as demand cooled, while a measure of the price paid by services businesses fell to its lowest level in nearly three years.

The ISM non-manufacturing index fell to 51.2 last month from 55.1 in February, while the price paid component fell to 59.5 from 65.6 in February, with the services sector employment indicator also dropping to 45.8 from 47.6 in February.

Also read: Thursday morning, the rupiah fell to IDR 14,965 per US dollar

Thus, Rully said the rupiah exchange rate tends to be influenced by global sentiment because domestic economic data is still minimal.

In the morning, the rupiah opened down 33 points or 0.22 percent to the position of Rp. 14,965 per US dollar. Throughout the day the rupiah moved in the range of Rp. 14,912 per US dollar to Rp. 14,968 per US dollar.

Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Thursday weakened to the position of IDR 14,943 per US dollar compared to the previous position of IDR 14,933 per US dollar.

source: www.antaranews.com

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