After the Eid holiday, the Rupiah fell to Rp. 16,176
[ad_1]
Residents queue to exchange rupiah at Bank Indonesia (BI)’s mobile cash service.
REPUBLIKA.CO.ID, JAKARTA — The rupiah exchange rate against the US dollar at the end of trading Tuesday (16/4/2024), weakened as a result of the release of better-than-expected US retail sales figures. The rupiah exchange rate closed down 328 points or 2.07 percent to IDR 16,176 per US dollar from the previous trading close on April 5 2024 of IDR 15,848 per US dollar.
“The weakening of the rupiah this time was pressured by the strengthening that occurred in the performance of the US dollar index, the impact of the release of better-than-expected US retail sales figures,” said ICDX analyst Taufan Dimas Hareva in Jakarta, Tuesday (16/4/2024).
Taufan said the stronger US retail sales data strengthened expectations that the US central bank or Federal Reserve (Fed) could maintain higher interest rates for a long period of time. US macroeconomic data reported monthly retail sales grew strongly by 0.7 percent from expectations of 0.3 percent. In February, retail sales data rose 0.9 percent, revised up from 0.6 percent.
Retail sales data is one of the leading indicators of consumer spending, which covers more than two-thirds of the US economy. Higher household spending suggests a tough inflation outlook.
The figures highlight the strong outlook for the US economy and support the view that the Fed should keep interest rates at high levels for longer. This underlies the increase in the US dollar currency.
Additionally, Fed officials have reiterated the need to keep interest rates higher until they are confident that inflation will return to the desired level of 2 percent.
San Francisco Fed Bank President Mary Daly said Friday that there was absolutely no urgency to start lowering interest rates. Daly added that there is still a lot of work to be done to ensure inflation returns to the desired level of 2 percent.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Tuesday fell to Rp. 16,176 per US dollar from the previous Rp. 15,873 per US dollar.
source: Antara
[ad_2]
Original Source Link
