Rupiah Moves Fluctuantly Amid Dominance of External Pressures

Jakarta (ANTARA) - The rupiah exchange rate closed stronger on Wednesday, gaining 58 points or 0.34% to Rp16,983 per US dollar from the previous close at Rp17,041 per US dollar. However, the Bank Indonesia Jakarta Interbank Spot Dollar Rate (JISDOR) moved weaker today to Rp17,002 per US dollar from the previous Rp16,999 per US dollar. Muhammad Amru Syifa from the Research and Development of the Indonesia Commodity & Derivatives Exchange (ICDX) assessed that the rupiah tends to move fluctuantly amid the dominance of external pressures. “From a global perspective, the rupiah’s weakening is still influenced by the US dollar, increasing financial market uncertainties, and rising oil prices due to the escalation of conflict in the Middle East,” he told ANTARA in Jakarta on Wednesday. These conditions, he continued, are driving a shift in fund allocations to safer assets and putting pressure on emerging market currencies. Additionally, expectations of Federal Reserve interest rate policies and the release of US economic data are cited as key market sentiments. From a domestic perspective, Bank Indonesia’s policies through instruments such as Bank Indonesia Foreign Exchange Securities (SVBI) and Bank Indonesia Foreign Currency Securities (SUVBI) are expected to help maintain forex stability and liquidity, although they have not yet been able to change the main direction of the rupiah’s movement. “In the short term, global dynamics remain the primary determining factor for exchange rate movements,” said Amru.