The US dollar weakened to Rp 16,300, the rupiah has the opportunity to strengthen today

US dollar weakened to Rp 16,348

Based on Bloomberg data, around 09.30 WIB, the US dollar weakened 2 points or 0.01% to the level of Rp 16,348. This weakening occurred in the midst of negative sentiment that still overshadowing the global financial market, especially related to President Donald Trump’s economic policy which was considered to have a risk of pushing the US economy to the gap of recession.

Ariston Tjendra, a financial market observer, said that there is an opportunity for the rupiah to continue to strengthen today. “The negative sentiment of the US dollar is still strong, especially after the US consumer consumer confidence survey report released on Friday (3/14) shows a significant decline,” Ariston explained.

Negative sentiment to the US dollar

Michigan Consumer Sentiment report released on Friday night shows a decrease in consumer confidence in US economic prospects. The index fell to the level of 57.9 from the previous 64.7. This reflects the concern of the US community on the impact of the tariff increase policy carried by the Trump government.

In addition, US inflation data released last week also shows a slow trend. US consumer inflation was recorded at 2.8%, lower than the previous figure of 3.0%. This lower inflation opens opportunities for the US Central Bank (The Fed) to cut the benchmark interest rate in the near future, which in turn can weaken the US dollar further.

Rupiah Prospects Today

Ariston predicts that the rupiah has the opportunity to strengthen to the support area in the range of Rp 16,200, with resistance at the level of Rp 16,400. “External factors such as negative sentiment to the US dollar and slowing inflation are the main drivers of strengthening the rupiah today,” he said.