TEMPO.CO, Jakarta - The rupiah is expected to strengthen ahead of the Constitutional Court or MK verdict today, June 27. On today's trade, the rupiah is estimated to gain as the market is moving towards a more consolidated direction.
Monex Investindo Futures analyst Andian said the rupiah has ample fundamentals to rebound and enter the safe territory. He predicted the rupiah to move stably between the range Rp14,000 and Rp14,250 per US dollar.
Meanwhile, Garuda Berjangka director Ibrahim predicted the rupiah to be traded at a level of Rp 14,120 to Rp14,230 per US dollar.
On Wednesday's trade, the rupiah failed to manage its five-day rally. According to Bloomberg, the rupiah closed 53 bps down to trade for Rp14,178 per US dollar.
So far this year the rupiah still manages to strengthen with an average gain of 1.49 percent. The slow gain comes with investors' diminishing expectation that The Fed would cut their interest rates this year.
In Jakarta, Garuda Berjangka president director Ibrahim Assuaibi said on Wednesday that the rupiah correction is mainly caused by the stance of US central bank's statement, which had dimmed out the market's—and President Donald Trump's—hope that interest rate would be cut by 50 bps next week.