From Antara News · · 1m 20s
Rupiah strengthens after US midterm election
Indonesia's currency gains as Democratic victory in US elections shifts investor sentiment toward emerging markets.
In brief
Indonesia's currency gains as Democratic victory in US elections shifts investor sentiment toward emerging markets. The rupiah strengthened to Rp18,070 per US dollar after Democrats won US midterm elections, as investors expect limits on tariff policy and shift toward riskier assets. Originally reported by Antara News.
Rupiah gains on election result
The rupiah rose 98 points to Rp18,070 per US dollar on Thursday, up from Rp18,168 the previous close. Woori Saudara Bank analyst Rully Nova attributed the gain to Democratic Party victory in US midterm elections.
Democrats expected to limit tariff policy
With Democratic victory, global investors expect limits on Trump administration's room to maneuver on tariff policy, taxes, government budget deficit and bond issuance. This prompted investors to rebalance portfolios toward risk-on positions.
“With the Democratic Party's victory, there is an expectation that it will limit the Trump administration's room to maneuver on tariff policy, taxes, the government budget deficit, and government bond issuance, prompting global investors to re-balance their portfolios toward risk-on.”
US Treasury yields and dollar weaken
The ten-year US Treasury yield fell ten point one basis points to four point eighty six percent. The US dollar index weakened to one hundred one point three, supporting the rupiah's gains.
Oil prices drop sharply
Brent crude oil fell more than eight percent to near ninety five dollars per barrel.
Rupiah expected to trade in narrow range
Based on improved sentiment and stronger economic growth projections for third-quarter two thousand twenty six, the rupiah is projected to move between Rp18,000 and Rp18,100 per US dollar.
The one thing
The rupiah strengthened to Rp18,070 per US dollar after Democrats won US midterm elections, as investors expect limits on tariff policy and shift toward riskier assets.
