After a period of weakness, the Rupiah strengthens again to 15,476 per USD on August 28, 2024.

Based on data from Bank Indonesia's (BI) Jakarta Interbank Spot Dollar Rate (JISDOR), the United States dollar (US$) exchange rate against the Indonesian rupiah closed at Rp15,476 on Wednesday (28/8/2024).

This figure represents a 0.21% strengthening from the previous exchange rate of Rp15,509 on Tuesday (27/8/2024). This value weakened from Monday (26/8/2024) when it reached Rp15,380.

Monday's exchange rate was the strongest in the last week. Generally, the rupiah fluctuated but remained within the range of Rp15,380-Rp15,579 from August 21-28, 2024.

Today's fluctuation and strengthening of the rupiah were predicted by several analysts.

Citing *Katadata.co.id*, money market analyst Ibrahim Assuabi believes that one factor causing the rupiah's weakening is concern over the escalating conflict in the Middle East. Israel and Hezbollah are engaged in a large-scale exchange of missiles, with Hezbollah retaliating against Israel for the killing of a senior commander last month.

A high-ranking American general stated on Monday (26/8/2024) that the danger of a wider war has slightly subsided, but the potential for an Iranian attack on Israel remains a risk. Despite this, Ibrahim expects the rupiah to strengthen again today.

"The rupiah is fluctuating, but it could close stronger in the range of Rp15,420 to Rp15,520 per US dollar," he said on Wednesday (28/8/2024).

Fikri C Permana, Senior Economist at KB Valbury Sekuritas, also projects the rupiah to strengthen again today. He predicts a slight increase to the level of Rp15,390-Rp15,590 per US dollar.

The driving factors are the State Debt Securities (SBN) auction results, which showed an increase in incoming bids and a decrease in yield. The same is true for the significant drop in global oil prices.

"Brent oil prices fell by more than 3%, thus reducing the risk of global inflation. However, the improvement in American consumer confidence and the anticipation of Australian inflation data somewhat hinder a stronger appreciation of the rupiah today," said Fikri.

Commodity and money market analyst Lukman Leong expects the rupiah to strengthen today. His reasoning is that the US dollar is under pressure again after disappointing Richmond Fed manufacturing data.

"However, the strengthening of the rupiah will be limited by concerns about the situation in the Middle East. The rupiah will range from Rp15,450 to Rp15,550 per US dollar," said Lukman.