The US dollar strengthened slightly in trading on Tuesday evening in Asia (November 18th), holding within the 99.4–99.6 range after a moderate rally in the previous two sessions. Real-time data showed the US Dollar Index hovering around 99.52, a slight increase of around 0.04%, with a daily range of 99.40–99.66.

This strengthening occurred amid selling pressure on global stock markets, with major indexes in Asia and Europe weakening sharply following a continued correction on Wall Street triggered by concerns about high valuations of technology and crypto stocks.

In the foreign exchange market, the dollar's movement was relatively subdued but tended to dominate against a number of major currencies. The euro and the pound sterling weakened slightly against the dollar, while the Japanese yen was under pressure again, with USD/JPY trading in the 155.3–155.4 range, reflecting continued strong demand for dollar-denominated assets.

Analyst reports also noted that the dollar received additional support from increased investor caution ahead of the release of US jobs data, which was delayed due to the government shutdown, as well as a series of other important economic data due this week.

On the monetary policy front, the market is still weighing statements from Federal Reserve officials, who hinted at the possibility of further interest rate cuts at their December meeting, albeit with a more cautious tone. Fed Governor Christopher Waller assessed that the US labor market is now "approaching a stagnant pace" and again pushed for a quarter-point interest rate cut as "additional insurance" against a deeper economic downturn, while inflation data is considered to be approaching target.

For developing countries like Indonesia, the combination of a persistently strong dollar, global stock market volatility, and uncertainty about the direction of the Fed's interest rate policy has the potential to maintain volatility in the rupiah, bond markets, and commodity prices such as gold and oil in the short term.

Source: Newsmaker.id