Rupiah Expected to Strengthen to 15,630-15,680 per US$ Today
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22 March 2024 12:48 WIB
TEMPO.CO, Jakarta - Laba Forexindo Berjangka Director Ibrahim Assuaibi predicts that the rupiah exchange rate against the US dollar will fluctuate today. He expects the rupiah to close stronger, between Rp15,630 and Rp15,680 per US dollar in today's trading, March 22.
On Thursday, the rupiah closed 54 points higher at Rp15,668.5 per US dollar.
Ibrahim explained that sentiment on the rupiah exchange rate is influenced by the outcome of the 2024 election and the Fed's decision on interest rates.
On Wednesday, the General Elections Commission (KPU) announced the results of the recount. Prabowo Subianto and Gibran Rakabuming Raka officially became the next president and vice president of Indonesia with 96.21 million votes out of 164.22 million valid voters.
At the same time, a large group of people demonstrated in front of the KPU building. "The mass demonstration took place in a peaceful manner without any riots. This favorable condition made the market react positively, allowing Garuda's currency to strengthen," Ibrahim said in an official statement quoted on Friday, March 22.
Meanwhile, in terms of external factors, Ibrahim said the US Federal Reserve kept interest rates stable as expected. Policymakers still expect to cut US interest rates three times this year, even though inflation remains high.
Fed Chairman Jerome Powell had said that inflation was on a steady downward trend within a rather bumpy path. Most of the world's major central banks are taking the same steps, planning to cut interest rates to spur growth. "Because the economy is slowing and inflation continues to decelerate," Ibrahim said.
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