Rupiah Closes at Rp 13,162 against the Greenback on Tuesday
19 May 2015 20:16 WIB
TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta slipped by 16 points at the end of Tuesday's trading session - down to Rp 13,162 per US Dollar after having traded at Rp 13,146 against the greenback in the earlier session.
"The Rupiah is depreciating as transaction volumes in the domestic market begins to decline - a trend driven by the lack of positive sentiments that could help prop up the currency," said an analyst for Platon Niaga Berjangka, Lukman Leong in Jakarta.
According to Lukman, investors are still worried about the prospects of the global and domestic economic growth - both of which currently are experiencing a slowdown.
That said, continued Lukman, Bank Indonesia's (BI) active intervention in the domestic foreign exchange market has prevented the Rupiah from dipping too deep against the greenback. The clearance of some of the capital that has been allocated for Indonesia's infrastructure project is also hoped to be able to help the Rupiah defend its' value.
Despite the downtred, said Lukman, the fact that Indonesia's consumption levels remain relatively normal - especially consumption figures that are directly related to basic necessities - reflect that the domestic economy is still quite robust.
"The government needs to make sure that its' citizens can consume - as such, it needs to ensure that prices do not go to such highs, as it could cause high inflations," said said Lukman.
The Head of Research for Monex Investindo Futures, Ariston Tjendra, said that the US Dollar is on an uptrend as its' bonds yield higher returns amidst the uncertainties surrounding the Greek sovereign debt crisis.
Furthermore, the greenback is also helped by a statement made by a member of the San Francisco branch of the Federal Reserve Bank of America, which stated that the US economy had never slowed to an extent that had been once predicted.
Meanwhile, BI's middle rate on Tuesday, May 19, 2015 stood at Rp 13,183 per US Dollar upon closing - down from yesterday's rate which stood at Rp 13,116 per US Dollar.
ANTARANEWS
