TEMPO.CO, Jakarta – The Indonesian rupiah exchange rate weakened against the US dollar on Friday, April 26. The rupiah closed Friday’s trading session down by 22-bps to Rp16,210 per USD.
The rupiah depreciation was a continuation of Thursday’s decline when the rupiah fell to Rp16,187 per US dollar. Meanwhile, the Indonesian note closed at Rp16.155 per USD on Wednesday.
Director of Laba Forexindo Berjangka, Ibrahim Assuaibi mentioned that the Commerce Department reported that the US gross domestic product grew by 1.6 percent year-on-year in the first quarter of 2024. It was slower than the 2.4 percent growth predicted by economists based on a Reuters poll.
“The report also showed that inflation, as measured by the core personal consumption expenditures (PCE) price index, rose 3.7 percent in the first quarter, exceeding the forecast of a 3.4 percent increase,” he said Friday, April 26.
Following the GDP data, the US interest rate futures market is pricing in a 58 percent chance of a Fed rate cut in September. This estimate is down from 70 percent on Wednesday, according to CME Group’s FedWatch tool.
Meanwhile, Finance Minister Sri Mulyani Indrawati stated that the performance of the state budget (APBN) remained in a surplus position until March 2024. In the first quarter of this year, the APBN was recorded as positive, although it remained cautious due to rising geopolitical tensions.
Moreover, the total APBN position is still a surplus of Rp8.1 trillion or 0.04 percent of GDP. From the primary balance side, the surplus is Rp122.1 trillion.
“The surplus performance occurred because state revenues were higher than APBN expenditures,” Ibrahim said.
Annisa Febiola
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