Reporter, Yanuar Riezqi Yovanda

TRIBUNNEWS.COM, JAKARTA – Money market observer Ariston Tjendra assessed that the rupiah exchange rate could strengthen to below Rp. 15,000 after BI raised its benchmark interest rate by 50 basis points last Thursday, September 22, 2022.

“Rupiah vs US dollar is still fluctuating at around Rp. 15,000. So, the potential to move below (Rp. 15,000) is still open,” he said via a short message to, Friday (23/9/2022).

According to him, the strengthening of Garuda’s currency will not be too far away because there are still some risks that weaken the rupiah.

“The risks are the potential for an economic slowdown and the Fed’s policies,” said Ariston.

On the other hand, the BI rate hike was seen as an anticipation of rising inflation in Indonesia because the level had already exceeded BI’s target, which was caused by an increase in subsidized fuel prices.

Read also: Reference Interest Rate Rises 50 Bps, What’s the Fate of Rupiah?

“In addition, this is also an anticipatory measure to face an aggressive increase in the US benchmark interest rate, to avoid capital outflows that could weaken the rupiah,” he concluded.

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