Rupiah weakens as US NFP data beats expectations

Jakarta (ANTARA) - The rupiah weakened by 6 points, or 0.03 per cent, to Rp18,095 per US dollar at the start of trading on Monday, compared with the previous close of Rp18,089 per dollar.

Doo Financial analyst Lukman Leong said the rupiah weakened as US non-farm payrolls (NFP) data came in significantly above expectations.

“The rupiah is expected to weaken against a strengthening US dollar after much stronger-than-expected US NFP data raised the probability of a Federal Reserve rate rise at its December meeting from 71 per cent to 80 per cent,” he told ANTARA in Jakarta on Monday.

According to Xinhua, US NFP increased by a seasonally adjusted 165,000, well above economists’ forecast of 59,000, while the unemployment rate fell to 4.1 per cent from 4.2 per cent in September.

The September jobs increase was revised up to 60,000 from 29,000, while August’s figure was raised to 186,000 from 133,000.

“However, strong hopes for peace in the Middle East could limit the rupiah’s weakening,” Lukman said.

US Vice-President JD Vance has reportedly been directly involved in indirect negotiations with Iran over the past two weeks, seeking a new ceasefire and the resumption of nuclear talks, Anadolu reported.

Axios, citing two sources familiar with the matter, reported that Vance has been in near-daily contact with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani, Pakistan’s Chief of Army Staff Field Marshal Asim Munir, and several other mediators.

White House envoy Steve Witkoff and presidential adviser Jared Kushner have also been involved in the effort.

According to the sources, Vance and the mediators have discussed the possibility of holding a working-level technical meeting between the two sides in the coming days. However, no such meeting has yet taken place.

In light of these factors, the rupiah is forecast to trade at Rp18,100–Rp18,150 per US dollar.