Global Jitters Take Hold, Rupiah Slips Further
Jakarta. Rupiah remained under pressure on Wednesday, closing weaker against the US dollar as global uncertainties continued to dominate market sentiment.
Rupiah ended afternoon trade down 22 points at Rp 16,780 per dollar, after earlier slipping as much as 30 points from the previous close of Rp 16,758. Rupiah had traded in the Rp 16,780–Rp 16,810 range during the session.
Ibrahim Assuaibi, director of Traze Andalan Futures, said the rupiah is expected to stay volatile but biased weaker in the next session. He pointed to recent remarks from US central bank officials that reinforced expectations of easier monetary policy.
According to Ibrahim, comments from officials at the Federal Reserve suggesting room for lower interest rates, alongside views that the current policy rate sits at a neutral level, have shaped investor sentiment. However, lingering global risks have continued to weigh on emerging-market currencies, including the rupiah.
Markets are now closely watching the upcoming US non-farm payrolls data for December, due on Friday, which is expected to provide clearer signals on the Fed’s interest rate outlook. Labor market strength remains a key factor in future policy decisions.
Geopolitical tensions are also adding to market unease. Ibrahim highlighted concerns surrounding the reported US military action in Venezuela, following statements by Donald Trump that Caracas had agreed to supply 30 million to 50 million barrels of oil to the United States after the arrest of Venezuelan President Nicolas Maduro last weekend.
In Asia, sentiment has been further clouded by rising tensions between Japan and China, after Beijing restricted exports of goods with potential military applications to Japan.
On the domestic front, the rupiah remains under pressure despite optimism from Finance Minister Purbaya Yudhi Sadewa, who said Indonesia’s economic growth could reach 6%. The government plans to accelerate fiscal spending early in the year and align it with monetary policy from Bank Indonesia to support growth.
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