Bisnis.comJAKARTA – The rupiah exchange rate against the US dollar closed lower at Rp 15,520 in trading today, Wednesday (9/27/2023). The rupiah closed lower along with most other Asian currencies.

According to Bloomberg data, the rupiah closed down 0.19 percent at IDR 15,520.5 per US dollar at 3 p.m. WIB. The US dollar index was flat at 106.23.

Along with the rupiah, the Singapore dollar weakened by 0.03 percent, the South Korean won by 0.05 percent, the Malaysian ringgit by 0.32 percent and the Thai baht by 0.40 percent.

Meanwhile, other Asian currencies such as the Japanese yen rose by 0.03 percent, the Hong Kong dollar by 0.01 percent, the Philippine peso by 0.07 percent, the Indian rupee by 0.02 percent and the Chinese yuan by 0.05 Percent.

Forexindo Futures Profit Director Ibrahim Assuaibi said the US dollar moved steadily on Wednesday (09/27/2023) and is nearing a new 10-month high amid concerns about rising US interest rates. Meanwhile, the euro and sterling fell to six-month lows.

According to Ibrahim, the sentiment stemming from the hawkish tone of recent Federal Reserve meetings was echoed by Fed officials in recent days when they raised the possibility that the central bank would need to raise interest rates further after ending its rate hike cycle had interrupted last week.

This has led to a rise in U.S. Treasury yields in recent days as traders brace for monetary conditions to remain tight for longer than previously expected.

Domestically, the rise in global crude oil prices due to the cessation of petrol and diesel exports from Russia to Europe and the UK caused petrol and diesel prices to rise further. With winter coming soon, this will cause prices of other commodities to rise and impact core inflation.

“Similarly, Indonesia is still importing crude oil, so the need for dollars to import crude oil continues to increase due to the strengthening of the dollar,” Ibrahim said in his research on Wednesday (9/27/2023).

On the other hand, the government expects that demand for dollars will be quite high at the end of the third quarter of 2023, when many listed companies, both state-owned and private, will have to pay dividends to investors.

Each year’s dividend payment period typically occurs in May and September 2023. Domestic demand for US dollars will increase 1-2 months before the dividend payment.

“This is also the reason why the rupiah has been in a weakening trend so far,” he said.

Meanwhile, Ibrahim estimates that the rupiah will fluctuate in trading next week but will close lower in the range of Rs 15,510 to Rs 15,580.

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