Rupiah, JCI weaken ahead of BI meeting as oil prices fall
JAKARTA – The rupiah against the US dollar and Jakarta Composite Index (JCI) moved in tandem during the first trading session on Wednesday (22/4), falling 0.19% and 0.20%, respectively.
The rupiah had strengthened 0.15% to IDR 17,143 per USD on Tuesday (21/4), but reversed to weaken to IDR 17,184 per USD by 10:02 AM today.
This came despite the US dollar index (DXY) in the spot market declining 0.11% to 98.28, according to Bloomberg data.
On the Indonesia Stock Exchange (BEI), 402 stocks advanced, 253 declined and 163 were unchanged in the first session.
However, the Jakarta Composite Index extended its losses to 7,544.36, after initially opening up 0.25%.
Analysts at Phintraco Sekuritas said market attention is now focused on the outcome of Bank Indonesia’s Board of Governors Meeting (RDG), which will announce the benchmark BI Rate at 2:00 PM WIB.
Technically, they noted the index remains in a weakening trend, as indicated by a narrowing MACD histogram and a Stochastic indicator in oversold territory.
“We expect JCI to move within the range of 7,500–7,600 in today’s trading,” the analysts said in a note released this afternoon.
Oil prices decline following Trump remarks
In commodities, Brent crude futures fell 1.41% to USD 88.41 per barrel by 1:00 PM WIB, after a modest gain earlier in the Asian session.
Meanwhile, WTI crude futures declined 0.86% to USD 97.63 per barrel, after nearly returning to USD 100 per barrel at the end of the New York session.
The pullback in global energy prices followed fresh remarks from US President Donald Trump regarding the Middle East conflict. Posting on his Truth Social account, Trump said he had received a request from Pakistan to hold off on military strikes.
However, as a defensive measure, he confirmed the continuation of the blockade of the Strait of Hormuz, while maintaining US military readiness in the key global trade route.
“We will also extend the ceasefire until a proposal is submitted and discussions are concluded, whatever the outcome,” Trump said, as he awaits a new peace proposal from Iran. (KR/ZH)
