Rupiah Strengthens Limitedly in First Week of 2025, Heres the Projection for Next Week
Rupiah strengthened limitedly in the first week of 2025. Next week, the rupiah exchange rate is projected to fluctuate against the United States (US) dollar.

Quoting Bloomberg, Friday (12/27), the spot rupiah closed at Rp16,197 per US dollar, up 0.23% in a week from last weekends position of Rp16,235 per US dollar.

On a daily basis, the spot rupiah strengthened slightly by 0.01% compared to yesterdays position of IDR 16,198 per US dollar.

Meanwhile, the rupiah at the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia (BI) closed at Rp16,217 per US dollar. The Rupiah Jisdor was observed to have increased by 0.21% weekly and strengthened by 0.12% daily.

Director of PT Laba Forexindo Berjangka Ibrahim Assuabi observed that the rupiah has not yet been free from the pressure of the risk of a slowdown in the Chinese economy. This follows the Manufacturing PMI data or the Caixin China PMI data this week which missed expectations.

Internal conflict in the South Korean government also burdened the Asian currency market. South Korea is still in turmoil that began with President Yoon Suk Yeols martial law order, then ended with his impeachment and arrest attempt.

The US dollar also continues to be strong as market players await clarity regarding the trade war, ahead of Donald Trumps inauguration on January 20. On the other hand, the dollar index continues to be supported by the heating up war, both in the Middle East and Europe.

Moreover, the central bank is expected to only cut interest rates twice this year by 50 bps, and there is also an assumption of only 33 bps. The central banks high interest rate expectations in the medium and long term are likely to be bleak for the rupiah, Ibrahim explained to Kontan.co.id, Friday (3/1).

According to Ibrahim, the rupiah strengthened thanks to Indonesian manufacturing data which returned to an expansionary level of 51.2. Inflation at 1.57% also supports optimism in the domestic financial market because it is the lowest level in history.

In addition, the rupiah is likely to be supported by the return of foreign investors because Bank Indonesia (BI) will buy up IDR 150 trillion in Government Securities (SBN) in 2025.

Bank Indonesias intervention is considered positive to cover maturing bonds which should push the rupiah up.

Bank Permata Chief Economist Josua Pardede said the rupiah tended to move sideways in weekend trading amid US employment data which gave solid signals.

The rupiah opened weak at the beginning of the session, but the rupiah was able to reverse direction and closed slightly stronger.

The rupiah this week also tended to move sideways, in line with the minimal investor activity at the end of the year. The Garuda currency had strengthened to the level of IDR 16,102, but turned weaker on the first day of 2025.

In line with investor movements at the end of the year, the rupiah this week tends to move flat, Josua told Kontan.co.id, Friday (3/1).

According to Josua, the rupiah has the potential to strengthen next week. This optimism is in line with projections of US employment data that signal an easing of the labor market, such as the ADP Employment Change and JOLTS Job Openings data.

Meanwhile, Ibrahim sees the rupiah as potentially weakening because US economic data will still be solid and uncertainty will still shroud the market ahead of Trumps inauguration.

Americas intervention in the Middle East conflict is also a concern because it could boost the dollar index.

Domestically, Decembers foreign exchange reserve data released on Wednesday (8/1) next week, will likely drag down the rupiah. Although it is estimated to drop slightly, Decembers foreign exchange reserves are expected to have an effect on the exchange rate.

Ibrahim projects that the rupiah will tend to weaken next week in the range of IDR 16,150 - IDR 16,250 per US dollar.

Meanwhile, Josua views the rupiah as having the potential to strengthen next week in the range of IDR 16,125 - IDR 16,250 per US dollar.

Source : KOntan.co.id

Jan 4, 2025
 
Bank note current rate:
  currency buy sell
USD 15,850 0
AUD 9,900 0
HKD 1,925 0
SGD 11,675 0
MYR 3,350 0
CAD 11,000 0
GBP 20,000 0
EURO 16,600 0
SFR 17,550 0
YEN 103.50 0
NZD 8,775 0
THB 375 0
NT 350 0
WON 10 0
DKK 1,850 0
SEK 1,125 0
BND 11,050 0
NOK 1,100 0
SAR 3,800 0
PHP 200 0
RMB 2,100 0
INR 120 0
RUB 85 0
AED 3,850 0
VND 0.43 0
TRY 300 0
   Last Updated :18 Feb 2025 - 03:24 PM
These are indicative rates. For actual exchange rates, please visit or call our outlets at (0361) 4741 940. We reserve the right to change the rates at any time without prior notice.
Currency Converter

Please Note :
Central Kuta does not sell foreign currencies in small denominations. Please Contact us for further information.