The rupiah exchange rate against the US dollar, at the start of trading Monday (7/10), fell 155 points or 1% to Rp. 15,640 per US dollar. Previously, the rupiah exchange rate was at IDR 15,485 per US dollar.
Money market observer Ariston Tjendra projects that the rupiah exchange rate still has the potential to weaken amidst the still solid employment conditions in the United States (US) and tensions in the Middle East that continue to spread.
“The Rupiah still has the potential to weaken against the US dollar today. The US dollar index is seen moving stronger in the 102.40s range this morning, where on Friday morning it was still in the 101.70s range,” said Ariston Tjendra, Monday.
Also read: US Jobs Data and the Iran-Israel Conflict Make the Rupiah Drop
Ariston explained the data non-farm payrolls The US (NFP) released last Friday showed that US employment conditions were still solid, namely 254 thousand in September 2024, higher than 159 thousand in the previous month.
“This still good condition could encourage the Fed to cancel its policy of cutting interest rates further,” he said.
Apart from that, tensions in the Middle East which have recently increased have also become a driver for strengthening the US dollar as a safe haven asset.
“The conflict seems to be continuing with Israel known to be making plans to carry out attacks, especially after their country was again attacked by Iran,” he said.
Ariston predicts that the rupiah could weaken towards IDR 15,580 per US dollar, with potential support in the range of IDR 15,430 per US dollar today. (Z-11)
#Rupiah #Weakens #Due #Factors #United #States #Middle #East #Conflict
