Jakarta (ANTARA) \u2014 The rupiah weakened by 9 points, or 0.05 per cent,\nto Rp16,903 per US dollar at the opening of trade in Jakarta on Friday,\ndown from the previous level of Rp16,894 per US dollar.<\/p>\n
Taufan Dimas Hareva, head of research and development at the\nIndonesia Commodity and Derivatives Exchange (ICDX), said the rupiah\u2019s\npotential weakness was linked to expectations that US interest rates\nwould remain higher for an extended period.<\/p>\n
\u201cThe rupiah is expected to move in a relatively stable range with a\nlimited weakening bias during today\u2019s trading session at\nRp16,800\u2013Rp16,950 per US dollar. Pressure on the rupiah continues to\nstem from the strengthening of the US dollar in global markets, in line\nwith expectations that United States interest rates will remain higher\nfor longer,\u201d he told ANTARA in Jakarta on Friday.<\/p>\n
Nevertheless, he added, the depreciation was not expected to be\nparticularly deep as domestic market participants were still closely\nmonitoring the monetary authority\u2019s stabilisation measures and\nIndonesia\u2019s relatively sound economic fundamentals.<\/p>\n
On the domestic side, the key drivers of sentiment include Bank\nIndonesia\u2019s interest rate policy, inflation stability, and foreign\ncapital flows in the bond and equity markets.<\/p>\n
Corporate demand for foreign currency to meet import requirements and\nservice external debt obligations was also seen as contributing to\nshort-term pressure.<\/p>\n
However, the trade surplus and Bank Indonesia\u2019s commitment to\nmaintaining exchange rate stability serve as factors restraining rupiah\nvolatility and keeping it under control amid global dynamics.<\/p>\n
Overall, market participants in the coming period are expected to\nclosely watch the release of US economic data, such as inflation figures\nand employment indicators, which will influence the direction of Federal\nReserve policy and US dollar movements.<\/p>\n
Developments in US bond yields, global risk sentiment, and commodity\nprice dynamics are also set to be important catalysts for rupiah\nmovements.<\/p>\n
\u201cThe combination of these external and domestic factors has the\npotential to keep the rupiah within a moderate fluctuation range, with\nmovement bias still sensitive to the direction of the US dollar,\u201d Taufan\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-weakens-amid-expectations-of-prolonged-higher-us-interest-rates-1771647802", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }