Forecasts for EUR to IDR
Recent forecasts for the EUR to IDR exchange rate suggest a strong upward trajectory for the euro against the Indonesian rupiah, driven by various geopolitical and economic factors. Analysts note that the euro recently rallied to 90-day highs, trading around 19,069 IDR, which is a significant 9.3% above its three-month average of 17,445 IDR. This bullish movement is attributed to a combination of German political stability following a coalition agreement between the CDU and SPD, as well as a general weakening of the US dollar.
The pressure on the rupiah is notable, particularly following Indonesia's drop beyond 17,000 per dollar, marking its lowest historical value. The currency has been significantly impacted by global trade tensions, especially as reciprocal tariffs imposed by the US have exacerbated economic vulnerabilities in Indonesia. Economists suggest that the ongoing geopolitical situations, including the war in Ukraine and the associated economic consequences for the Eurozone, have contributed to shifts in investor sentiment, impacting both the euro and the rupiah.
Additionally, the fluctuations in oil prices, with current benchmarks indicating that OIL has fallen 12.2% below its three-month average, also play a role in the dynamics between EUR and IDR. The link between oil prices and currency values is particularly relevant since Indonesia is a net oil importer. Any sustained decline in oil prices could further weaken the rupiah as fiscal pressures mount.
As the euro continues to gain momentum, analysts forecast that if the European Central Bank maintains a hawkish stance on monetary policy to tackle inflation, the euro could see continued strength against the rupiah. Conversely, any signs of economic instability in Indonesia or further escalation of trade tensions could lead to increased volatility for the IDR. Overall, the outlook for the EUR to IDR exchange rate appears to favor the euro in the near term, provided that macroeconomic trends and geopolitical events do not dramatically alter the current landscape.
