The exchange rate of the Rupiah against the US Dollar opened weaker\nin trading on Thursday (17\/9). This weakening was triggered by the move\nby the US central bank, the Federal Reserve (The Fed), which raised its\nbenchmark interest rate amidst persistently high US inflation.<\/p>\n
Based on trading data on Thursday morning, the Rupiah moved weaker by\n43 points or 0.24 per cent to the position of Rp17,739 per US Dollar. At\nthe close of the previous trading session, the Rupiah stood at the level\nof Rp17,696 per US Dollar.<\/p>\n
Muhammad Amru Syifa from the Research and Development unit of the\nIndonesia Commodity & Derivatives Exchange (ICDX), explained that\nthe current movement of the Rupiah is heavily influenced by US monetary\npolicy dynamics and global market conditions.<\/p>\n
\u201cThe Fed\u2019s decision provides support for the US Dollar and maintains\nUS Treasury yields at high levels, thus limiting the space for Rupiah\nappreciation,\u201d Amru stated in Jakarta on Thursday (17\/9).<\/p>\n
On Wednesday (16\/9), the Fed officially raised the benchmark interest\nrate by 25 basis points to 3.75-4.00 per cent. This step was taken to\ncurb inflation in the United States, which remains above the target.<\/p>\n
The interest rate hike triggered a global strengthening of the US\nDollar and kept US government bond yields high. This condition\nautomatically exerts pressure on emerging market currencies, including\nthe Rupiah.<\/p>\n
Despite the pressure, Amru noted there is slight room for stability\nfor regional currencies due to the decline in global oil prices as\nsupply concerns began to subside.<\/p>\n
From a domestic perspective, market participants are still closely\nmonitoring fiscal conditions and national financial market stability.\nThe main focus for investors is on the government\u2019s ability to maintain\nthe credibility of the State Budget (APBN) amidst massive external\nshocks.<\/p>\n
In the short term, the Rupiah is predicted to move volatile with a\ntendency to remain under pressure. Amru projects the Rupiah\u2019s movement\nrange to be between Rp17,650 and Rp17,800 per US Dollar.<\/p>\n
\u201cSubsequent movements will depend heavily on the future direction of\nFed policy, developments in US Treasury yields, and sentiment regarding\ndomestic fiscal conditions,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-opens-weaker-against-us-dollar-following-fed-rate-hike-1789624554", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }