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Rupiah closes down to 15,632 per US dollar

Tempo - January 7, 2023

For The Next Week's Trade, Ibrahim Predicted The Rupiah Will Open Sideways And Close On The Lower End Between Rp15,610 And Rp15,670 Per Us Dollar., Jakarta – The Rupiah closed January 6, 2023, trading session with a 16-bps slip to Rp15,632 per US dollar. The downtrend continued from Thursday, January 5, 2023, when the Garuda fell 30 bps to trade Rp15.616 against the greenback.

Laba Forexindo Berjangka director Ibrahim Assuaibi, said the rupiah depreciation was caused by the dollar's reinforcement one day ahead of the US job market report announcement.

"Some people believe that this could force investors to reconsider their chicken game against The Fed, which could potentially push the greenback towards victory," Ibrahim said in a written statement, Friday, January 6, 2023.

December's employment report, which will soon be released, Ibrahim said, is expected to be able to show that the economy was able to create at least 200,000 new jobs last month. Meanwhile, the unemployment rate was stable at 3.7 percent.

"The Fed said it won't lower interest rates this year, but the market does not believe in that outlook," Ibrahim continued. "According to Commerzbank, this will remain as a central aspect dominating the dollar's prospects."From the domestic side, the uptrend in economic performance has not bolstered the rupiah. Ibrahim also said that the Indonesian economy will still face various challenges, including this year's global uncertainty, slowing economic growth, rising food and energy prices, and inflation, which has the potential to cause a global recession.

Source: https://en.tempo.co/read/1676713/rupiah-closes-down-to-15632-per-us-dolla