Navigating the Current Landscape of Rupiah Valuation Against the Dollar and Euro

Officers show US dollar and rupiah notes at BSI Bank, Jakarta (ANTARA PHOTO/Muhammad Adimaja)

The rupiah exchange rate is the price or ratio at which the Indonesian currency (rupiah) can be exchanged for foreign currencies, such as the United States dollar (USD), euro (EUR), or other currencies.

This exchange rate is important because it affects various aspects of the economy, including international trade, inflation, and investment.

There are several factors that influence the rupiah exchange rate, such as national economic conditions where economic growth, inflation, and interest rates in Indonesia influence the demand and supply of the rupiah in the international market.

Then global conditions that create global economic stability, changes in commodity prices (such as oil), and international trade relations also have an impact on the rupiah exchange rate.

Next, there are government and Bank Indonesia policies. Interventions by Bank Indonesia to control the exchange rate and monetary policy, such as raising or lowering interest rates, affect exchange rate movements.

Then there is the flow of foreign capital which causes the inflow and outflow of foreign investment, either in the form of portfolios (such as stocks and bonds) or direct investment, which can cause appreciation or depreciation of the rupiah exchange rate.

Also read: Rupiah Slumps as US PCE Release Waits

As well as the trade balance, this is if Indonesia imports more than it exports, the demand for foreign currency increases, which can cause the rupiah to weaken.

For the type of exchange rate, it can be nominal, so that the price is directly used to exchange rupiah for foreign currency.

Then you can also use the real exchange rate. This exchange rate is adjusted for price differences between countries, providing a picture of actual purchasing power.

Also read: Rupiah Weakens as Waiting for US Unemployment Claims Release

From this, there is also an impact of exchange rate fluctuations on exports and imports. A weakening rupiah can make Indonesian goods cheaper in the international market (good for exports), but also make imports more expensive.

Then the other impact becomes inflation. The weakening of the exchange rate can cause inflation, because imported goods become more expensive, so that domestic prices also increase.

As well as the country’s foreign debt, this occurs when the rupiah weakens, the burden of debt payments in foreign currency becomes heavier.

Also read: Rupiah Strengthens Amid Waiting for US GDP Data

Here are the Current Rupiah to Dollar and Euro Exchange Rates

Currently, the rupiah exchange rate against the United States dollar (USD) is at Rp 15.397,5 per 1 USD on September 5, 2024.

The rate showed a slight decline from its highest value at the beginning of the week of Rp. 15,579.5 per USD.

Meanwhile, the Euro (EUR) exchange rate against the Indonesian Rupiah (IDR) is around Rp17.095,8 per 1 Euro on September 5, 2024.

This exchange rate showed little fluctuation from the previous few days, with the highest value being around Rp. 17,234 at the beginning of the week.

Exchange rates can fluctuate depending on various factors, including global economic conditions and monetary policy. (Z-12)

Indonesian currency to INR

The Rupiah Exchange Rate: ⁤Understanding⁣ its Importance and⁢ Influencing Factors

The rupiah exchange rate⁢ is ‌the⁢ price or ⁤ratio at which the Indonesian currency (rupiah)‌ can be exchanged for foreign⁤ currencies, such as the United States dollar ​(USD), euro (EUR), or other currencies. ‍This exchange rate is ⁣crucial as it affects various aspects of ⁢the economy,‍ including‍ international trade, inflation, and investment.

Factors Influencing the Rupiah Exchange Rate

Several factors influence the rupiah exchange rate, including:

1. National Economic Conditions: ‍Economic growth, ⁣inflation, and interest‍ rates​ in Indonesia influence the demand‌ and⁣ supply of the rupiah in the international market.
2. Global Conditions: Global ‌economic stability, changes in commodity prices (such as oil), and international trade relations also have ⁣an impact on the rupiah exchange rate.
3. Government and Bank Indonesia Policies: Interventions by Bank Indonesia to control the⁣ exchange rate and monetary policy, such as raising or lowering interest rates, affect exchange rate​ movements.
4. Flow of Foreign Capital: The inflow⁢ and‌ outflow of foreign⁤ investment, either ⁤in the form ‍of portfolios (such as stocks ⁤and bonds) or direct investment, can cause appreciation or depreciation of the rupiah ⁣exchange rate.
5. Trade Balance: ⁤If Indonesia ⁤imports more than ⁣it exports, the⁣ demand for foreign currency increases, which can cause the rupiah to weaken.

Types of⁢ Exchange ‌Rates

There⁣ are two types of exchange rates:

1. Nominal Exchange Rate: The price is directly used to exchange rupiah for foreign currency.
2. Real Exchange Rate: This exchange rate is adjusted for price differences between⁣ countries, providing a picture of actual purchasing power.

Impact⁢ of⁣ Exchange⁢ Rate Fluctuations

Exchange rate fluctuations have several impacts on the economy, including:

1. Exports and Imports:⁢ A weakening‍ rupiah can make Indonesian goods‌ cheaper in the international market (good for exports), but also ‍make⁤ imports more expensive.
2. Inflation: The⁣ weakening of the exchange rate can⁢ cause inflation, because imported goods become more expensive, so⁣ that domestic prices also ⁣increase.
3. Foreign Debt: ⁢When​ the rupiah weakens, the burden of debt ‌payments in foreign currency‌ becomes‍ heavier.

Current‍ Rupiah to ​Dollar‌ and Euro Exchange Rates

According to recent data, the rupiah exchange rate against the United States dollar (USD) is⁣ at around Rp 15,354.52 per 1 USD [1]. Meanwhile, the exchange rate against the euro ‌(EUR)‌ is approximately 1 EUR⁢ = 17,119.1⁤ IDR [2] or 1 IDR = ‌0.000058 EUR [3].

the rupiah exchange rate plays a vital⁤ role in the Indonesian economy, and its fluctuations can have significant impacts on⁢ various aspects of the economy. Understanding the factors that influence the exchange⁤ rate ⁣and⁢ monitoring its movements ‌are ⁣crucial for policymakers, businesses, and ​individuals to make informed decisions.

References:

[1] Western⁤ Union

[2] XE

[3] XE

Indonesian Rupiah to Euro

The Rupiah Exchange Rate: Understanding Its Importance and Current Conversion Rates

The rupiah exchange rate is the price or ratio at which the Indonesian currency (rupiah) can be exchanged for foreign currencies, such as the United States dollar (USD), euro (EUR), or other currencies. This exchange rate is crucial because it affects various aspects of the economy, including international trade, inflation, and investment.

Factors Influencing the Rupiah Exchange Rate

Several factors influence the rupiah exchange rate, including:

1. National Economic Conditions: Economic growth, inflation, and interest rates in Indonesia influence the demand and supply of the rupiah in the international market.
2. Global Conditions: Global economic stability, changes in commodity prices (such as oil), and international trade relations also impact the rupiah exchange rate.
3. Government and Bank Indonesia Policies: Interventions by Bank Indonesia to control the exchange rate and monetary policy, such as raising or lowering interest rates, affect exchange rate movements.
4. Flow of Foreign Capital: The inflow and outflow of foreign investment, either in the form of portfolios (such as stocks and bonds) or direct investment, can cause appreciation or depreciation of the rupiah exchange rate.
5. Trade Balance: If Indonesia imports more than it exports, the demand for foreign currency increases, which can cause the rupiah to weaken.

Types of Exchange Rates

There are two types of exchange rates:

1. Nominal Exchange Rate: The price is directly used to exchange rupiah for foreign currency.
2. Real Exchange Rate: This exchange rate is adjusted for price differences between countries, providing a picture of actual purchasing power.

Impact of Exchange Rate Fluctuations

Exchange rate fluctuations have several impacts, including:

1. Exports and Imports: A weakening rupiah can make Indonesian goods cheaper in the international market (good for exports), but also make imports more expensive.
2. Inflation: The weakening of the exchange rate can cause inflation, as imported goods become more expensive, leading to increased domestic prices.
3. Foreign Debt: When the rupiah weakens, the burden of debt payments in foreign currency becomes heavier.

Current Rupiah to Dollar and Euro Exchange Rates

According to recent data, the current rupiah exchange rate against the United States dollar (USD) is around Rp 15,365,000 per 1 USD [1[1]. This rate has shown a slight decline from its highest value at the beginning of the week of Rp. 15,453.1 per USD [3[3].

Meanwhile, the Euro (EUR) exchange rate against the Indonesian Rupiah (IDR) is around Rp 17,095.8 per 1 Euro.

the rupiah exchange rate plays a vital role in Indonesia’s economy, and understanding its factors and impacts is essential for policymakers, businesses, and individuals. Stay updated with the latest exchange rates to make informed decisions.

References:

[1[1]

[2[2]

[3[3]