Jakarta, CNBC Indonesia – It was seen that the Rupiah was going against the United States (US) dollar this week. Likewise, all Asian currencies fell against the US dollar.
Launching from Refinitiv this week, the rupiah fell 1.18% point-to-point (ptp) against the US dollar. Meanwhile, in trading last Friday (11/15/2024), the rupiah closed flat at Rp.
This week the rupiah again visited the psychological level of Rp.
Not only the rupiah, Asian currencies were almost unable to resist the US dollar’s ferocity this week. In addition to the South Korean winner who was still able to fight against the US dollar, that is up 0.18%.
Even though the rupiah fell, Indonesia’s neighboring currency, the Malaysian ringgit, was the worst performer in Asia this week, falling 2%.
The US dollar has indeed been strong recently. This can be confirmed by the US dollar index (DXY), where the US dollar has flown 1.61% throughout this week alone. In trading last Friday, the US dollar index rose 0.02% to 106.69.
The rupiah and most Asian currencies also weakened due to the strength of US government bonds (US Treasuries). This week, we return (result) The 10-year tenor Treasury has soared 14.7 basis points (bps).
Trump’s victory strengthened the US dollar exchange rate. Understandably, Trump has said several times that he wants to make it happen strong dollarstrong US dollar.
In addition, the US central bank (Federal Reserve / The Fed) is starting to return a hawkafter having some time to act Doubtful Market players responded with disappointment.
Fed Chairman Jerome Powell indicated that the Fed would slow down interest rate cuts. This situation is based on strong US economic growth. The Fed even said that US economic growth was one of the best in the world.
“The economy is not sending a signal that we should rush to get interest rates lower,” Powell said in remarks to business leaders in Dallas, quoted from CNBC International.
The US economy grew 2.8% in the third quarter of 2024, slightly lower than expected but still higher than the historical US trend of around 1.8%-2%. Initial projections show that the US economy will grow by 2.4% in the fourth quarter of 2024.
Powell also said the labor market remained strong despite disappointing employment issues in October that he attributed largely to hurricane damage and labor strikes. Number of jobs non-farm payments (NFP) just 12,000 in October 2024, the lowest since December 2020.
Regarding inflation, he said that there had been progress and that Fed officials expected that inflation would continue to move back to the 2% target. However, this week’s inflation data showed modest increases in consumer and producer prices that were further away from the Fed’s target.
“Inflation is moving closer to our long-term target of 2%, but it is not there yet. We are committed to completing this task,” said Powell.
For the record, US inflation rose to 2.6% (year after year/ yoy) in October from 2.4% (yoy) September 2024. The unemployment rate reached 4.1% in September 2023. The unemployment rate even touched 4.3% in July 2024, the highest level since October 2021.
CNBC INDONESIA RESEARCH
(chd/chd)
2024-11-16 05:45:00
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