TEMPO.CO, Jakarta - The rupiah suffered another correction against the US dollar today, Sept. 19. As of 16:00 today, the Garuda was traded for 14,875 per dollar, down 20 bps from yesterday`s closing.
When trade opened this morning, the rupiah even slumped 40 bps at 14,895 per US dollar, and weakened further to Rp14,915 before the first session ended.
Nearing the afternoon, the rupiah managed to rebound 25 bps before closing at 14,855 per US dollar.
Read: Rupiah Exchange Rate Set at 14,500/US$ in 2019 Macro Assumptions
The rupiah is expected to keep fluctuating against the greenback until 2020. Bank Indonesia (BI) International Department's executive director Doddy Zulverdi said the projection is based on the Federal Reserve's plan to keep raising interest rates until 2020.
However, Doddy said that the rate of the depreciation will slow down in 2019 and 2020. Additionally, The Fed has promised to normalize its balance sheet with meticulous measures. "We all hope that by 2020, pressures will start to subside," he said on Wednesday.
Doddy said that Indonesia must improve the current accounts because pressure will linger on until 2020. He remarked that the rupiah will remain weak against the US dollar because the country still has a net demand for the greenback. He said the key to make the rupiah stronger is by reducing dependence on the dollar.
