Rupiah weakens ahead of Fed Chair's speech at Jackson Hole Symposium

The rupiah exchange rate against the US dollar weakened by 2 points, or 0.01 percent, to Rp17,725 per US dollar at the close of trading on Wednesday, compared with the previous close of Rp17,723 per US dollar.

Currency analyst and Director of Laba Forexindo Berjangka, Ibrahim Assuabi, said the rupiah weakened ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium on Friday (28/6).

“Warsh’s speech at Jackson Hole could provide a clearer indication of the Fed’s view on the balance between persistent inflation and the overall economic outlook,” he said in a written statement in Jakarta on Wednesday.

He further explained that Warsh’s speech is highly significant because market participants are awaiting further clarity on when the Fed is willing to adjust policy in response to inflation.

Warsh has faced criticism over a lack of clarity regarding his economic views, so the speech at the Jackson Hole Symposium could potentially serve as an important signal for the market.

In addition, investors are now turning their attention to US Personal Consumption Expenditures (PCE) data, which will be released today.

“The PCE report will provide additional insight into the state of the US economy and inflationary pressures,” Ibrahim said.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened today to Rp17,717 per US dollar from Rp17,703 per US dollar previously.