TEMPO.CO, Jakarta - Rupiah`s exchange rate has been less than enthusiastic after investors are still waiting for Bank Indonesia to issue the latest reference rate that was decided in the bank’s policy meeting on Tuesday, October 23.
“Bank Indonesia has increased its interest rate five times since May and is predicted to maintain an interest rate at the level of 5.75 percent. After being the worst performing currency all year long, Bank Indonesia’s tightening cycle might not end yet,” said FXTM research analyst Lukman Otunaga yesterday.
The US – China tense trade situation continues to take center stage after a report emerged suggesting that White House’s economic adviser Larry Kudlow accused Beijing of not taking any actions to reduce the tension upon the upcoming group of G20 meeting next month in Argentina.
Lukman said that Investors are predicted to be fixed on the Europe Central Bank (ECB) this week, which is predicted not to change any monetary policy. “Despite the predictions suggesting an unchanged interest rate, investors should not immediately judge the meeting will have no effect.”