Rupee weakens to 14,903/US dollar ahead of US economic data release

The rupee exchange rate opened 15 points lower at Rs 14,898 per US dollar in the spot market this morning. The strengthening US Dollar against the release of US employment data later this week put pressure on the Rupee.

bring together fleurbergThe Rupee continued to weaken to Rp 14,903 at 09.25 WIB, a far cry from yesterday’s close position of Rp 14,883 per US Dollar.

Other Asian currencies also weakened this morning. The Taiwanese dollar fell by 0.17%, the South Korean by 0.13%, the Philippine peso by 0.74%, the Indian rupee by 0.12%, the Malaysian ringgit by 0.03% and the baht Thai 0.14%. On the other hand, the Japanese yen gains -0.06% with the Chinese yuan up 0.04% and the Singapore dollar 0.03%, while the Hong Kong dollar is stable.

DCFX analyst Lukman Leong expects the rupiah to remain under pressure ahead of the release of US jobs data due tonight. The Rupee is expected to rise in the range of Rp 14,850 to Rp 14,975 per US Dollar.

Rupee likely to remain weak, especially under pressure from stronger USD ahead of US jobs data release Non-farm payroll (NFP) Which should be solid,” Lukman said in his research Friday (2/9).

NFP employment data will be released tonight with the expectation that 300,000 new jobs will be added in August. Meanwhile, new private sector recruitment data released by Automatic Data Processing (ADP) showed a decline. The number of new hires increased by 132,000, down from 268,000 in July.

Lookman said the tight US labor sector will continue to raise inflation expectations and the Fed’s interest rate policy. The market is now eagerly awaiting the Fed meeting on September 20-21, which is expected to see a rate hike of 50 to 75 basis points.

Domestically, the release of inflation data on Thursday showed deflation in July, easing pressure on BI to raise interest rates to weaken the rupee. less attractiveLukman said.

inflation Title It was 4.69% on an annualized basis in August, compared to 4.94% the previous month. However, core inflation rose to 3.04% year-on-year, which was still 2.86% from the previous month.

Analysts at PT Sinaramas Futures expect the rupiah to strengthen again after the release of weekly US unemployment claims data. The rupiah could weaken around Rs 14,900, with chances to strengthen around Rp 14,860 per US dollar.

Last week, unemployment insurance claims were 232,000. That number is 5,000 lower than the previous week and is the lowest level since late June. On the same day, US manufacturing PMI data for August in the expansion zone was flat.

“Good U.S. economic fundamentals can withstand shocks from U.S. monetary tightening policies, raising hopes of raising U.S. benchmark interest rates to fight inflation,” Ariston said in his research.

On the other hand, Indonesia’s inflation rate, which declined in August, could give market participants a positive sentiment. According to him, these figures can strengthen the rupee.

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