Rupiah May Weaken over Market Concerns of Palestine-Israel War
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16 October 2023 11:07 WIB
TEMPO.CO, Jakarta - Money market analyst Ariston Tjendra said the rupiah has the potential to weaken against the United States dollar as an effect of the risk transfer sentiment that occurred at the end of last week over market players' concern about the war between Palestine and Israel in the Gaza strip.
"[Market players] worry that the war will escalate and involve other countries with Israel's land attack plans," he told Antara in Jakarta, Monday, October 16, 2023.
However, he continued, this sentiment cannot last long if the market sees how other nations are refraining from being directly involved in war.
On the other hand, Indonesia's trade balance data in September 2023, which is likely to be at a surplus, is able to give confidence to the rupiah.
"[There is] potential to weaken towards Rp15,730 per US dollar with potential support in the range of Rp15,650 per US dollar," Ariston said.
On Monday morning, the rupiah's Jakarta interbank exchange rate against the US dollar fell 0.16 percent or to Rp15,708 per US dollar, 26 points from Rp15,682.
The Palestinian war against the Israeli regime that broke in the early weeks of October 2023 has pushed the greenback up. Market players are anticipating the war to escalate on a wider scale, which would give the US dollar—a safe asset—the potential to strengthen further.
ANTARA
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