JABAR EKSPRES –The rupiah exchange rate (kurs) transacted between banks in Jakarta in early trading on Tuesday, weakened as the market awaited the United States (US) April 2023 inflation report.
The rupiah on Tuesday (5/9) weakened 46 points or 0.32 percent to Rp14,757 per US dollar compared to the position at the close of previous trade of Rp14,711 per US dollar.
“The rupiah is expected to trade weaker against the US dollar today due to wait and see US April inflation data which will be released today and the increasing trend of US government bond yields,” said Woori Saudara Bank analyst Rully Nova in Jakarta.
Rully said the US April inflation forecast was 0.4 percent, higher than March inflation of 0.1 percent. A slowing inflation rate will have an impact on the hawkish and tight policy of the US central bank or the Fed.
US bond yields rose above the psychological level of 4 percent for the two-year tenor and 3.5 percent for the 10-year tenor.
Meanwhile, domestically, the rupiah movement was influenced by data on Bank Indonesia (BI) foreign exchange reserves which fell.
Indonesia’s foreign exchange reserves at the end of April 2023 reached USD 144.2 billion, slightly lower than the position at the end of March 2023 of USD 145.2 billion.
The decline in foreign exchange reserves in April 2023 was influenced, among others, by the need for payment of government external debt and foreign exchange liquidity needs in line with anticipation of the National Religious Holidays.
Rully projects the rupiah to move in the range of Rp14,690 per US dollar to Rp14,790 per US dollar.
On Monday (8/5) the rupiah closed down 33 points or 0.22 percent to Rp14,711 per US dollar compared to the position at the close of previous trade of Rp14,678 per US dollar.
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