JAKARTA – The rupiah exchange rate against the US dollar hit IDR 16,645 on Tuesday (26/3), surpassing its previous pandemic low of IDR 16,640.

Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas Indonesia, stated that this rupiah depreciation should be a concern for investors. Liza pointed out that this decline occurred while the Dollar Index (DXY) remained near its five-month low.

“There is widespread belief that the rupiah's depreciation is due to the strengthening DXY. However, in reality, this weakness is driven by other factors,” Liza explained to IDNFinancials.com on Wednesday (26/3).

Despite this, Liza noted there is still hope for a rupiah rebound from a technical perspective, particularly given its position near resistance and the presence of an RSI negative divergence.

“This indicates the potential for the USD to reverse, especially if the doji candle holds until the monthly closing,” she said.

According to IDNFinancials.com, the rupiah marginally strengthened by 0.08% to IDR 16,575.9 at Wednesday’s close. However, over the past month, the rupiah has depreciated by 1.4%. (KR/ZH)