Rupiah Climbs against Dollar ahead of Long Weekend
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Editor
7 February 2024 21:37 WIB
TEMPO.CO, Jakarta - The rupiah closed 95 points higher to trade for 15,635 per US dollar on Wednesday, February 7. The appreciation came ahead of a long weekend in Indonesia to celebrate the Isra and Miraj and Chinese New Year.
Laba Forexindo Berjangka analyst and director Ibrahim Assuaibi wrote in his research that the dollar index closed down today. He mentioned a statement by Federal Reserve President Cleveland Loretta Mester that if the US economy goes as expected, there will be room for an interest rate cut.
Ibrahim said that traders are forecasting a Fed rate cut of 19.5 percent in March. "They are now also predicting a rate cut by around 117 bps at the end of the year, down from the initial anticipation in January of around 150 bps," he said.
For tomorrow's trade, the rupiah is predicted to fluctuate with a tendency to gain further and trade between Rp15,600 and Rp15,670 per US dollar.
Market Concerns over China's Economy
Furthermore, Ibrahim said market concerns regarding China's economic health continued. Despite the government's announcement that they will take some measures to support the local stock market this week, they haven't done much to deal with the slowdown.
"China's inflation data for January will be released on Thursday. This data also comes out ahead of China's Lunar New Year holiday for a week," he said.
Defara Dhanya Paramitha
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