WEEKLY REVIEW
Jakarta, CNBC Indonesia – The rupiah shot up 1.24% to a level of 15,150 per US dollar on Friday (24/3/2023). Even within a week the rupiah recorded a strengthening of 1.34%.
The strengthening of the rupiah against the US dollar was caused by the sentiment of The Fed again raising interest rates by 0.25% on Wednesday (22/3/2023).
This increase is the ninth time that the benchmark interest rate is currently in the range of 4.75-5%.
Even so, the Fed cannot confirm whether in the future they will raise interest rates again or not depending on economic conditions.
The increase in interest rates was carried out amid the banking crisis that hit a number of US banks. With this increase, US interest rates reached their highest since October 2007.
Reported from Reuters, Thursday (23/3/2023), the Federal Reserve indicated it would halt further borrowing cost hikes after the recent collapses of two US banks. Fed Chair Jerome Powell seeks to reassure investors about the health of the banking system following the Silicon Valley Bank bankruptcy.
The Fed’s highly anticipated rate hike, which has produced eight previous rate hikes in the past year, seeks to balance the risks of rampant inflation with the threat of instability in the banking system.
Disclaimer: This article is a journalistic product in the form of views from CNBC Indonesia Research. This analysis does not aim to persuade readers to buy, hold, or sell related investment products or sectors. The decision is entirely up to the reader, so we are not responsible for any losses or profits that arise from that decision.
(saw/saw)
