The Indonesian Rupiah opened weaker at Rp 13,879 per US dollar at the start of the year.

The Indonesian Rupiah weakened against the US dollar at the opening of trading on Thursday (2/1), the first day of the year, reaching Rp 13,879 per US dollar. The strengthening of the US dollar is in line with expectations of a phase-one trade deal between the US and China.

Furthermore, the Chinese economy is showing signs of stabilization. The manufacturing Purchasing Managers' Index (PMI) for December 2019, released by China's National Bureau of Statistics (NBS), stood at 50.2. A figure above 50 indicates expansion.

Today, the Central Bureau of Statistics (BPS) released inflation data for December 2019. Inflation is likely to be under control, in line with the government's target. Therefore, although it opened weaker, the Rupiah is expected to close stronger in the range of Rp 13,863-13,905 per US dollar.