What are USD to IDR forecasts?
According to FX analysts, the US Dollar has strengthened against the Indonesian Rupiah (IDR) driven by an increasing risk-negative market sentiment attributed to economic tensions between the US and China. On the other hand, the IDR has remained weak against the US Dollar with the currency hovering near the IDR=15,000 level versus the very strong USD into the second quarter of 2023. The continued weakness of the rupiah has been attributed to the high demand for USD and the stable 5.7% range USD to IDR has traded in for the past three months, with a current rate of 30-day highs near 14,977, just below its 3-month average.
Economists predict that the current strength of the US Dollar over the past year will eventually reverse in 2023 as the Federal Reserve's interest rate hike cycle finally comes to an end. However, for the time being, businesses and individuals looking to conduct international transactions involving USD and IDR should be vigilant and consider the current market view before making any decisions. Nevertheless, Indonesians working abroad have been sending record amounts of money back home, despite the pandemic, which has propped up the Indonesian economy at a time it needs it the most.