TEMPO.CO, Jakarta – The rupiah strengthened against the US dollar on Friday, after the United States’ Initial Jobless Claims rose more than expected.
The rupiah closed stronger 0.42 percent on Friday at Rp16,196 against the US dollar. “US Initial Jobless Claims data rose higher than expected for the ending week of May 31, 2024,” said Bank Permata Chief Economist Josua Pardede to Antara in Jakarta on Friday, June 7, 2024.
Initial Jobless Claims rose to 229,000 from 221,000 in the previous week, hinting at a looser US labor market.
Investors are likely to wait for more US labor market indicators, which will be released later today, to assess the future path of the US central bank or the Fed’s monetary policy.
Additionally, risk-on sentiment reappeared in Asian markets after ADP Employment Change recorded lower-than-expected figures. The data brings hope that the US labor market has weakened.
The sentiment affected the rupiah on Thursday, bringing 0.15 percent appreciation to Rp16,260 per US dollar.
Foreign investors keep noting net outflows on the Indonesian stock market on Thursday, reaching US$36.44 million, but the IDC Composite still rose 0.39 percent to 6,975.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Friday strengthened to Rp16,218 per US dollar from the previous Rp16,279 per US dollar.
GRACE GANDHI
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