The rupee exchange rate weakens, breaks Rp 15,700 per level of the US dollar

JAKARTAKOMPAS.com – Rupee exchange rate against the US dollar the spot market in the trading session on Friday (11/4/2022) opened lower. In this morning’s trading session, Garuda’s currency even broke through the level of Rp 15,749 per US dollar.

Refer to the data Bloomberg, exchange rate of the rupee against the US dollar it opened at Rp 15,734 per US dollar, depreciating from its previous closing position of Rp 15,695 per US dollar. This is the first time since April 2020 that the rupee exchange rate has penetrated to the level of Rp. 15,700 per US dollar.

Read also: Rupiah weakens, Sri Mulyani: even better than Malaysia and Thailand

After an opening to the downside, the rupee exchange rate continued to be depressed until it touched the level of Rp 15,749 per US dollar. However, the correction tends to be reduced in the first trading hour, where as of 10.25 WIB, the rupee exchange rate weakened by 0.21% to Rp 15.728 per US dollar.

The depreciation of the rupee exchange rate is in line with the strengthening of the US dollar index. Investment data shows Uncle Sam’s country currency index is in the 112.58 range.

Read also: The rupee exchange rate is weakening, says BPS

Ibrahim Ascustombi, director of earnings at Forexindo Futures, said the US dollar strengthened against a number of currencies after the US central bank, the Federal Reserve (Fed), signaled that US interest rates would reached a peak above market forecasts.

“The Fed raised interest rates by 75 bais points in a range from 3.75% to 4% on Wednesday, the fourth consecutive increase, Powell (Fed chairman) dampened hopes for a monetary policy pivot. easier, ”he said in his research on Friday.

However, this morning, it was noted that most of the other Asian currencies actually strengthened against the US dollar. The appreciation against the US dollar was experienced by the Japanese yen, Singapore dollar, Taiwan dollar, South Korean won, Philippine peso, Indian rupee and Chinese yuan.

Read also: Could the rupee exchange rate break Rp 16,000 per US dollar? This analyst says

Earlier, Sinarmas Futures analyst Ariston Tjendra said the weakening of the rupee was due more to the thinner margin between Fed and Bank Indonesia (BI) interest rates. This makes the US dollar more attractive.

“With the Fed’s new benchmark interest rate hike by 75 basis points to 3.75-4.00 percent, this will again reduce the spread with the BI interest rate (4.75 percent) which can encourage market traders. market to look for US dollars, “he said.

Read also: Rupiah Can Translucent Rp 15,500, BI Governor: We continue to intervene

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