Rupiah Not Affected by US Fed Rate Increase
Indonesia’s economic indicators, such as the economic growth and inflation, were still better than those in many other countries that were seeing a potential for recession and hyperinflation.
Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting on February 01, 2023 in Washington, DC. The Federal Reserve announced a 0.25 percentage point interest rate increase to a range of 4.50% to 4.75%.
JAKARTA, KOMPAS — The decision of the United States’ central bank, the Federal Reserve (Fed), to raise its benchmark interest rate by 25 basis points to a range of between 4.5 percent and 4.75 percent on Wednesday (1/2/2023) has not affected the rupiah exchange rate against the US dollar. Indonesia's healthy economic performance has attracted global investors to place their funds in Indonesia, so the rupiah has strengthened.
According to the Jakarta Interbank Spot Dollar Rate (Jisdor), the rupiah had strengthened to Rp 14,868 per US dollar at the close of trading on Thursday, up from Rp 14,991 per US dollar on Wednesday.