Rupiah Expected to Weaken Further to 16,510 per US Dollar
Translator
Editor
24 June 2024 12:40 WIB
TEMPO.CO, Jakarta - The rupiah is expected to depreciate further against the US dollar today, June 24, according to Laba Forexindo Berjangka director Ibrahim Assuaibi. In last Friday's trading, the rupiah closed at 16,450 per US dollar, down from 16,438 on Thursday, June 20, 2024.
"The rupiah exchange rate is likely to fluctuate and close lower in the range of Rp16,440 - Rp16,510," Ibrahim said in his routine analysis.
Ibrahim said the market continues to monitor fiscal policy direction uncertainty, which increases fiscal risks. This is also a factor influencing the weakening of the rupiah currency. This can be seen from the projected condition of a large budget deficit in the range of 2.8 percent of GDP, which is inching towards the upper limit of 3 percent to GDP.
"In addition, news has recently surfaced about President-elect Prabowo Subianto's seemingly permissive attitude towards debt, with rumors even suggesting that he wanted to raise the public debt ratio to around 50 percent of GDP, although this news was later denied by the Prabowo-Gibran team," he said.
Ibrahim suggested that the Prabowo-Gibran administration promptly communicate its commitment to fiscal discipline in order to curb the rise in fiscal risks and prevent negative sentiment towards the rupiah.
The government and Bank Indonesia should maintain the currency's stability based on the fundamental strength of the Indonesian economy, he said. This means a trade balance surplus, not foreign exchange intervention with limited foreign exchange reserves or raising domestic interest rates.
ANNISA FEBIOLA
Editor's Choice: Jokowi Gathers Financial Committee to Discuss Weakening Rupiah Today
Click here to get the latest news updates from Tempo on Google News
