Rupiah Weakens IDR 15,805 per US Dollar, Check Out the Reasons

InvestorCrypto.net - The exchange rate of the Indonesian Rupiah against the US Dollar weakened by 0.03% to Rp 15,805 in Tuesday's trading session (26/3). 

However, analysts are predicting that the Rupiah may strengthen today. Money Market Analyst Lukman Leong believes that the Rupiah will strengthen against the corrected US Dollar. The weakening of the US Dollar is driven by several factors. "

The weakening of the US Dollar occurred after weaker than expected manufacturing data and new home sales in the US," said Lukman to Katadata.co.id on Tuesday (26/3). With this situation, Lukman predicts that the Rupiah will move in the range of Rp 15,750 - Rp 15,850 per US Dollar today.

The policy of the Central Bank of China Gives Positive Sentiment to the Rupiah. 

The Central Bank of China has injected liquidity of 150 billion after previously doing the same with an amount of 50 billion yuan. Money Market Observer Ariston Tjendra believes that this liquidity injection can provide a positive sentiment for risk assets such as the Rupiah. 

The movement of the Rupiah will also be driven by positive sentiment from the Asian stock indices. 

"The Rupiah may move positively or strengthen against the US Dollar after previously weakening touching the resistance range of Rp 15,800 per US Dollar," said Ariston. 

However, on the other hand, market participants are still observing the stance of the US central bank, The Federal Reserve, which will not rush to cut the benchmark interest rates this year. "Because inflation data still remains above the target level of 2% and some US economic data is still quite strong," he said.

US housing data shows that the number of building permits still shows growth in February 2024 compared to the previous month. 

This indicates that the US economy is still solid enough to contain inflation at a high level. With this situation, Ariston predicts the potential strengthening of the Rupiah towards Rp 15,750 per US Dollar with potential depreciation towards Rp 15,830 - Rp 15,850 per US Dollar.

Meanwhile, the movement of Asian currencies recorded varied against the US Dollar. According to Bloomberg, the Thai Baht weakened by 0.10% and the Chinese Yuan weakened by 0.09%. 

On the other hand, the Malaysian Ringgit strengthened by 0.10%, the Philippine Peso strengthened by 0.23%, the Singapore Dollar strengthened by 0.10%, and the Japanese Yen strengthened by 0.08%.

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