JAKARTA, October 21, 2024 - The Indonesian rupiah closed at Rp 15,504 per US dollar, reflecting a 0.15% decline from the previous week, amidst ongoing global economic worries.
According to Bloomberg, the Bank Indonesia's Jisdor rate slightly strengthened by 0.006% to Rp 15,465 per dollar. Josua Pardede, Chief Economist at Bank Permata, noted that the limited depreciation of the rupiah aligns with market sentiment regarding global economic prospects.
Initially, the rupiah appreciated following a 25 basis points cut in the one-year and five-year interest rates by the People's Bank of China, exceeding market expectations of a 15 basis points reduction. However, concerns over potential US import tariffs and economic developments in China led to a reversal in the afternoon session.
The dollar strengthened due to increasing confidence in Donald Trump's presidential candidacy and heightened tensions in the Middle East, particularly Israel's military actions against Hamas and Hezbollah.
Ibrahim Assuaibi from PT Laba Forexindo Berjangka indicated that the formation of a new government in Indonesia, with an unusually large cabinet of 105 members, has been met with negative market reactions.
Looking ahead, Ibrahim forecasts continued depreciation of the rupiah, projecting a trading range of Rp 15,490 to Rp 15,580 per dollar for October 22.