Indonesian Rupiah Shows Strength Against US Dollar on Tuesday Trading

Market Opening and Currency Movement

The Indonesian rupiah opened 0.19% stronger against the US dollar on Tuesday morning, trading at Rp16,631 per USD. This follows a 0.07% decline on Monday, closing at Rp16,663 per USD. The US dollar index was flat at 99.42, showing minimal change. Other Asian currencies mostly weakened: Japanese yen (0.09%), Hong Kong dollar (0.02%), Singapore dollar (0.01%), and South Korean won (0.09%).

Analyst Predictions and Market Sentiment

Ibrahim Assuaibi from PT Traze Andalan Futures predicts that the rupiah will trade fluktuatively in the range of Rp16,630 to Rp16,670 per USD today. The market sentiment is influenced by the shifting expectations regarding the Federal Reserve's interest rate policy. According to CME FedWatch, there is an 87% probability of a 25 basis point rate cut by The Federal Reserve in their next meeting.

Major Banks' Exchange Rates

The US dollar exchange rates at major Indonesian banks varied as follows:

1. Bank Central Asia (BCA):

   • E-rate: Rp16,625 (buy) | Rp16,645 (sell)
   • TT Counter: Rp16,450 (buy) | Rp16,760 (sell)
   • Bank Notes: Rp16,460 (buy) | Rp16,760 (sell)

2. Bank Rakyat Indonesia (BRI):

   • E-rate: Rp16,633 (buy) | Rp16,657 (sell)
   • TT Counter: Rp16,535 (buy) | Rp16,735 (sell)

3. Bank Mandiri:

   • Special Rate: Rp16,610 (buy) | Rp16,640 (sell)
   • TT Counter: Rp16,425 (buy) | Rp16,725 (sell)
   • Bank Notes: Rp16,425 (buy) | Rp16,725 (sell)

4. Bank Negara Indonesia (BNI):

   • Special Rate: Rp16,626 (buy) | Rp16,656 (sell)
   • TT Counter: Rp16,480 (buy) | Rp16,780 (sell)
   • Bank Notes: Rp16,480 (buy) | Rp16,780 (sell)

Market Implications

The rupiah's strengthening is attributed to the weakening US dollar in early December due to shifting market expectations about the Federal Reserve's monetary policy direction. The predicted rate cut has influenced currency movements globally and regionally, with the rupiah showing relative strength compared to other Asian currencies.