In the midst of weakening US economic data, there could be market concerns about a global economic slowdown
Jakarta (Armfalcon.com) – The rupiah exchange rate traded between banks in Jakarta weakened on Thursday due to fears of a global economic slowdown.
On Thursday morning, the Garuda currency opened down 33 points or 0.22 percent to the position of IDR 14,965 per United States (US) dollar compared to the position at the close of the previous trade, which was IDR 14,932 per US dollar.
“In the midst of weakening US economic data, there could be market concerns over a slowdown in the global economy,” said PT Sinarmas Futures analyst Ariston Tjendra when contacted in Jakarta, Thursday.
Also read: The Rupiah slumps as US economic data weakens
He said the market sentiment towards risky assets looks negative this morning. Most Asian stock indexes also moved lower.
Meanwhile, the US dollar is seen strengthening against other exchange rates this morning. At the time of writing, the US dollar index was up 0.13 percent to 101.98.
Market concern over the global economic slowdown could push market players out of risky assets and into safe assets in the US dollar.
Nevertheless, Ariston assesses that survey data on China’s manufacturing and service sector activities in March 2023 which will be released this morning can be a consideration for the market to enter into risky assets, because China is still considered one of the motors of the world economy.
“If the results improve, this might be able to withstand the weakening of the rupiah against the US dollar,” he said.
Therefore, he estimates that the rupiah exchange rate will weaken against the US dollar to around IDR 15,000 per US dollar, with the potential to strengthen to around IDR 14,900 per US dollar.
On Wednesday (5/4) the rupiah closed down 33 points or 0.22 percent to the position of Rp. 14,932 per US dollar compared to the position at the previous closing of Rp. 14,899 per US dollar.
Also read: Thursday morning, the rupiah fell to IDR 14,965 per US dollar
Reporter: Agatha Olivia Victoria
Editor: Ahmad Wijaya
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