Doo Financial Futures currency analyst Lukman Leong believes the strengthening of the rupiah exchange rate is in line with investor concerns over the fiscal health of the United States (US).
"The rupiah and Asian currencies in general strengthened against the US dollar, where the US dollar index was seen to have fallen quite significantly this morning due to concerns about the health of the US fiscal," he told ANTARA in Jakarta, Friday.
Quoting Xinhua, the downgrade of the US government debt rating from Aaa to Aa1 by Moody's will increase pressure on the US economy which is facing the risk of recession amid rising tariffs and inflation expectations.
Moody's cited US government debt and interest payments as reasons for the downgrade.
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