Ella 
The Indonesian rupiah’s downward trajectory against the US dollar persisted throughout the recent week, culminating in a significant drop on the final day of the joint Eid al-Fitr holiday on Monday, April 15. Trading commenced at Rp16,117 per US dollar, marking the currency’s lowest level in the past four years since it reached Rp16,373 on April 3, 2020.
At the onset of the Eid holiday on April 5, 2024, the rupiah stood at Rp15,887 per US dollar. Trading in the domestic financial market is set to resume on Tuesday, April 16, 2024, following the extended holiday period.
Myrdal Gunarto, an analyst from Maybank Indonesia, shed light on the depreciation trend, clarifying that the actual exchange rate of the rupiah against the US dollar had not yet breached the Rp16,000 mark. He attributed the weakening of the rupiah primarily to the dynamics within the domestic forex market, which remained inactive during the prolonged holiday season.
“The observed depreciation of the rupiah against the US dollar, nearing the Rp16,000 threshold, may be attributed to transaction mechanisms in foreign markets, such as Singapore’s non-deliverable forward (NDF) market,” stated Myrdal in his remarks on Saturday, April 13.
Myrdal further noted that the rupiah’s decline coincided with a strengthening US dollar, both globally and within the Asian region. This trend was mirrored in the rising position of the Dollar DXY index variable, serving as an indicator of the US dollar’s robust performance.
