US Economic Data Bends Rupiah to IDR 14,683 at the Beginning of the Week

Jakarta, Armfalcon.com —

Rupiah exchange rate perched at IDR 14,683 per US dollar on Monday (8/5) morning. Garuda’s currency weakened 5 points or 0.03 percent from its previous position.

The majority of currencies in the Asian region also appear to be weakening. The Chinese yuan weakened 0.04 percent, the South Korean won minus 0.36 percent, the Thai baht minus 0.17 percent and the Japanese yen minus 0.13 percent.

Meanwhile, the Singapore dollar strengthened 0.06 percent, the Indian rupee strengthened 0.04 percent, the Philippine peso strengthened 0.02 percent, and the Hong Kong dollar stagnated.

Meanwhile, the main currencies of compact developed countries are in the green zone. The British pound strengthened 0.03 percent, the European euro 0.1 percent, the Canadian dollar 0.1 percent, the Australian dollar 0.03 percent and the Swiss franc 0.09 percent.

PT Sinarmas Futures analyst Ariston Tjendra projects the rupiah to weaken against the US dollar today. According to him, the US employment data released last Friday was unexpectedly better than expectations.

This reversed expectations of a cut in the US benchmark interest rate this year. In addition, this can also help encourage the strengthening of the US dollar against other exchange rates.

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“The rupiah has the potential to be under pressure against the US dollar because of the above,” Ariston told Armfalcon.com.com.

Nevertheless, he said, the weakening may not be too far because the market still expects the US central bank (The Fed) will not raise its benchmark interest rate again this year according to indications obtained in last week’s press conference.

He projects the rupiah to move in the range of Rp. 14,630 to Rp. 14,700 per US dollar today.

(mrh/agt)