Rupiah Thin Leads Over the US Dollar The exchange rate or the rupiah exchange rate managed to strengthen slightly against the United States (US) dollar at the close of trading on Wednesday (12/10/2022). Quoting Bloomberg, the exchange rate edged up one point or 0.01 percent to Rp15,356 per US dollar at the close of trading this afternoon. Previously, at the close of trading at the beginning of the week or Tuesday, October 11, 2022, the rupiah exchange rate closed at the level of Rp. 15,357 per US dollar.
1. The rupiah exchange rate is based on the BI middle rate
Meanwhile, based on the Jakarta Interbank Spot Dollar Rate (JISDOR) of Bank Indonesia (BI) on Wednesday (12/10/2022), the rupiah exchange rate was recorded at Rp15,373 per US dollar. This figure is higher than the rupiah exchange rate on Tuesday (11/10/2022) which was at the level of Rp15,362 per US dollar.
2. The global recession will intensify
In the previous two days, the US dollar always showed strengthening against currencies of developing countries, including the rupiah. The strengthening of the US dollar against the rupiah at the beginning of the week was inseparable from the warnings of the International Monetary Fund (IMF) and the World Bank regarding the increasing global recession.
This is exacerbated by inflation which is still a continuing problem as a result of Russia’s special operations in Ukraine.
No doubt if then there is a slowdown in growth in developed countries and currency depreciation in many developing countries. These conditions forced the Federal Reserve (The Fed) to continue to raise interest rates and increase debt pressure on developing countries. In the United States, the world’s largest economy, the labor market is still very strong but is losing momentum due to the impact of higher borrowing costs,” said Director of Profit at Forexindo Futures, Ibrahim Ascustombi in an official statement.
3. Rupiah can weaken up to Rp15,500 per US dollar
Ibrahim previously projected that the rupiah exchange rate against the US dollar would be at Rp15,400 to Rp15,500 at the most. In the rest of this year. “That’s a big possibility. In my opinion. At IDR 15,400 to IDR 15,500, that’s probably the highest price.” He told IDN Times, Wednesday (28/9/2022). According to his estimation. The rupiah will return to Rp. 14 thousand before the end of the year. To be exact at Rp. 14,500 to Rp. 14,600.