Rupiah Exchange Rate Hits Lowest Point in Last 4 Years; Expert Explains Why
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15 April 2024 14:45 WIB
TEMPO.CO, Jakarta - The depreciating trend of the rupiah against the US dollar persisted in the recent week. On the last day of the joint leave of Eid al-Fitr on Monday, April 15, began trading at Rp16,117 per US dollar, marking the lowest level in the last four years since the dollar reached Rp16,373 on April 3, 2020.
The rupiah remained at Rp15,887 per US dollar at the beginning of the Eid holiday on April 5, 2024. The domestic financial market will only resume trading on Tuesday, April 16, 2024.
According to Myrdal Gunarto, an analyst from Maybank Indonesia, the actual rupiah exchange rate against the US dollar has not yet reached the level of Rp16,000. However, the weakening of the rupiah was primarily driven by the domestic forex market, which was still closed during the long holiday season.
“The depreciation of our rupiah against the US dollar, which has touched Rp16,000, could be attributed to the transaction mechanisms in foreign markets, such as Singapore's non-deliverable forward (NDF) market,” Myrdal said in his statement on Saturday, April 13.
However, he said the rupiah appeared to be weakening as the US dollar was getting stronger, both globally and in the Asian region. The position of the Dollar DXY index variable continued to soar, serving as a reflection of the US dollar's strength.
Forexindo Futures Profit Director, Ibrahim Assuaibi, seconded Myrdal’s statement. He argued that the multi-day Eid holiday in Indonesia was also a contributing factor to the rupiah's depreciation against the dollar.
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