THE rupiah exchange rate against the US dollar on Tuesday (20/8) is expected to strengthen due to weak US economic activity data going forward. At the start of Tuesday morning’s trading, the rupiah rose 56 points or 0.36% to 15,494 per US dollar from the previous 15,550 per US dollar.
“The rupiah is expected to strengthen again against the US dollar, which continues to weaken after the very weak leading index of future economic activity data,” said currency analyst Lukman Leong in Jakarta, Tuesday.
The US CB Leading Index on a month-on-month (mom) basis in July 2024 was recorded at -0.6% or weaker than the estimate of -0.3% and lower than June 2024 of -0.2%.
The US dollar is also still under pressure from investors’ anticipation of a speech by US central bank Chairman Jerome Powell this week, who is expected to make a dovish statement regarding the direction of its benchmark interest rate policy.
Currently, the chance of a US interest rate cut in September 2024 is still 25 basis points (bps). Investors will recalculate the possibility after Powell’s speech.
Lukman predicts the rupiah exchange rate to be in the range of 15,500 per US dollar to 15,600 per US dollar. (Ant/Z-2)
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