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Rupiah weakens against US dollar in the wake of election
Amid a weakening rupiah and cautious investor sentiment after the release of trade balance data, market players are waiting for United States retail sales figures, anticipating further currency fluctuations.
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All about money: A teller shows a customer rupiah bank notes on Oct. 30, 2023, at Bank BSI in Jakarta. The Indonesian currency opened lower at Rp 15,666 against the greenback on Feb. 16, 2024. (Antara/Muhammad Adimaja)
T
he Indonesian rupiah weakened by 0.28 percent against the United States dollar to Rp 15,666, shortly after the opening of Friday's trade.
Money market analyst Lukman Leong believes the rupiah will open flat with a limited tendency to weaken, citing several factors including investor wariness about post-election conditions and the recent release of trade balance data.
"Investors are still in a wait-and-see stance in anticipation of the post-presidential election conditions," Lukman told the katadata.co.id news portal on Friday.
Previously, Statistics Indonesia (BPS) reported on Thursday that Indonesia's trade balance for January 2024 only netted a surplus of US$2.01 billion, lower than December 2023’s surplus of $3.29 billion.
BPS also reported that Indonesia's exports in January 2024 fell by 8.34 percent month-to-month (mtm) to $20.52 billion from $22.41 billion in December. Meanwhile, imports reached $18.51 billion, up by 0.36 percent mtm.
These figures, which fell short of market expectations, are considered to have had a negative impact on domestic financial markets including the rupiah, as both domestic and foreign investors may turn bearish on domestic markets.
Furthermore, market participants are also awaiting US retail sales data, with the rupiah expected to move within the range of Rp 15,600–15,700.
