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Rupiah closes 2023 with a climb to 15,399 per US dollar

Tempo - December 30, 2023

Defara Dhanya Paramitha, Jakarta – The rupiah closed up by 18 points to trade for 15,399 per US dollar at the close of this year's trade on Friday, December 24, 2023. Previously, the rupiah had weakened by 40 points to 15,417 per US dollar.

"By the start of next year's trading [Tuesday, January 2, 2024], the exchange rate is predicted to still fluctuate but may close stronger in the range of Rp15,350 to Rp15,420 per US dollar," PT Laba Forexindo Berjangka analyst and director Ibrahim Assuaibi said in a written statement, Friday, December 29, 2023.

Although the target to close the year with an exchange rate of Rp15,300 per US dollar was not achieved, Ibrahim is grateful that the rupiah had strengthened at the end of 2023.

In his analysis, he highlighted the elections, especially the presidential election which will be held on February 14 next year. "If the presidential elections take only one round, it would be better for investment," he said. However, if the presidential election runs for two rounds, investors will take a wait-and-see stance until June 2024.

For now, he said that investors, especially those from the real sector, tend to wait and see who the new president will be. "They are also waiting for what policies will be issued," he said.

Furthermore, Ibrahim said that 2024 is a political year almost globally. Not just Indonesia, several countries in the world will also hold elections, including India, Taiwan, South Korea, and the United States.

"The Indian election will affect the political dynamics in Asia, considering the country's very large population," Ibrahim said. And if there is a change in leadership from the Democratic Party to the Republican Party in the United States, the world's politics could also change.

Source: https://en.tempo.co/read/1815134/rupiah-closes-2023-with-a-climb-to-15399-per-us-dolla