The rupiah exchange rate on Wednesday (14/7) is predicted to weaken because US inflation indicator data released last night showed an increase exceeding market expectations, thereby encouraging the strengthening of the US dollar.

"In addition, domestic factors, namely the increase in daily new cases of COVID-19 which continues to break records, have also put pressure on the rupiah," said Money Market Observer Ariston Tjendra in Jakarta.

He explained, overnight the US inflation indicator for June from US Consumer Price Index data showed an increase of 5.4% YoY. This figure was higher than expectations of 4.9% and well above the Fed's inflation target of 2%.

"This opens the opportunity for the US Central Bank to reconsider faster monetary tightening so that this encourages the strengthening of the US dollar," he explained.

Meanwhile, the increase in COVID-19 cases in Indonesia, approaching 50 thousand, could open up oppor