Discourse on The Fed's Monetary Tightening May Weaken Rupiah
Tuesday, 15-June-2021 11:10
JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is predicted to weaken on Tuesday in the shadow of the discourse on the tightening monetary policy of the United States (US) central bank, the Federal Reserve (Fed).
At 10:10 Indonesian Western Time, the rupiah weakened by 40 points or 0.28 percent to IDR14,243 per US dollar, compared to the position of IDR14,203 per dollar on the previous day's trade closing.
"The rupiah may still be overshadowed by market concerns about the discourse on changes in the US central bank's monetary policy and concerns about an increase in COVID-19 cases in Indonesia, which could trigger further tightening of economic activity," said Money Market Observer Ariston Tjendra in Jakarta, on Tuesday (06/15/2021), as quoted from Antara.
He said the market concerns has the potential to depress the rupiah against the US dollar today.
Ariston continued that on the other hand, the improving market appetite for risk with the positive US stock index last night and the Asian stock index this morning could restrain the weakening of the rupiah.
"The market does not fully believe there will be a policy change at the US central bank in the near future," said Ariston.
In addition, Indonesia's trade balance data for May 2021 will be published today. Ariston assessed that if the surplus exceeds the previous surplus, it can withstand the weakening of the rupiah, and the rupiah may strengthen.
Ariston said that rupiah has the potential to weaken to the range of IDR14,230 per US dollar today, with the potential to strengthen in the range of IDR14,180 per US dollar.
On Monday (06/15/2021), the rupiah closed lower by 14 points or 0.1 percent to the position of IDR14,203 per US dollar, as compared to the position at the close of the previous trade of IDR14,189 per US dollar.
Reporter : turkhan
Editor : turkhan