Rupiah Under Pressure as Global and Domestic Factors Converge

Geopolitical Tensions Impact Currency Markets

The Indonesian rupiah faced downward pressure against the US dollar on Friday, closing 0.23% lower at Rp16,725 per USD ²

. This depreciation was largely influenced by a significant rise in the US Dollar Index (DXY), driven by escalating geopolitical tensions between the United States and Venezuela ¹

Source 1

https://investasi.kontan.co.id/news/ketegangan-asvenezuela-picu-penguatan-dolar-rupiah-berisiko-melemah

. Analysts from Henan Putihrai Asset Management (HPAM) noted that such geopolitical conflicts typically strengthen the US dollar as global investors seek safe-haven assets.

Market Expectations and Future Projections

Reza Fahmi from HPAM suggested that if the situation between the US and Venezuela worsens, the DXY could potentially surge to the 105-107 range in the short term ¹

. This projection is also influenced by market expectations regarding future US monetary policy and economic data releases. The Jakarta Interbank Spot Dollar Rate (JISDOR) similarly reflected this trend, declining 0.03% to Rp16,725 per USD ²

Source 2

https://investasi.kontan.co.id/news/rupiah-tertekan-fundamental-dan-sentimen-global-ini-proyeksinya-senin-51

.

Fundamental Factors and Currency Performance

Lukman Leong from Doo Financial Futures pointed out that the rupiah's weakness is not solely attributed to global factors but also to its own fundamental challenges ²

. The currency has been under pressure due to both internal economic conditions and external global market sentiments. As such, the rupiah's performance remains vulnerable to both domestic economic developments and international market dynamics.