Rupiah Faces Continued Pressure from US Dollar and Oil Prices
The Indonesian rupiah is expected to remain under pressure from the US dollar in trading on Tuesday, October 6, as market participants closely monitor key economic indicators. The rupiah ended Monday, October 5, at Rp17,917 per US dollar, a decline of 35 points or 0.20% from the previous close.
Economist Syafruddin Karimi attributed the rupiah's weakness to the strengthening of the US dollar globally and higher yields on US Treasury bonds. The ongoing Middle East conflict also continues to influence energy prices, adding to market volatility.
For Tuesday's trading, Syafruddin highlighted three main factors affecting the rupiah: the direction of the US dollar index, US Treasury yields, and crude oil prices. Market participants will also watch US services sector data, which could impact expectations for Federal Reserve monetary policy.
Bank Indonesia (BI) has maintained its BI-Rate at 5.75% and remains committed to stabilizing the rupiah through various measures, including foreign exchange market interventions. Analysts predict the rupiah will fluctuate between Rp17,850 and Rp18,000 per US dollar, with a short-term equilibrium around Rp17,900-Rp17,950.