The Indonesian rupiah closed higher at Rp15,698 per US dollar on Thursday, October 31, 2024, marking a 0.04% increase or 6.5 points.
During the same trading session, the US dollar index fell by 0.03% to 103.96. Other Asian currencies also showed signs of strength, with the Japanese yen rising by 0.81%, the South Korean won by 0.06%, the Singapore dollar by 0.07%, and the Taiwanese dollar by 0.25%.
Conversely, some Asian currencies weakened, including the Chinese yuan, which dropped by 0.02%, and the Indian rupee, down by 0.01%.
Factors influencing the rupiah's movement include a surge in US private payrolls in October 2024, which alleviated concerns over temporary disruptions from storms and strikes. Additionally, separate data indicated that the US economy grew at an annualized rate of 2.8% in Q3 2024, slightly below the 3% expected by economists.
Despite mixed US indicators suggesting a loose labor market, consumer confidence remains high, leaving uncertainty about the Federal Reserve's interest rate outlook. Recent economic readings have shown a resilient labor market, prompting traders to scale back expectations for rate cuts.
Domestically, debates surrounding an 8% economic growth projection under the Prabowo-Gibran administration have stirred controversy, as the IMF has set a target of 5.2%. Geopolitical tensions and a slowing Chinese economy add to the complexity.
Looking ahead to Friday, November 1, 2024, the rupiah is projected to trade within a range of Rp15,690 to Rp15,760, with fluctuations expected.