Rupiah, Indonesia's currency. ANTARA/M Agung Rajasa
TEMPO.CO, Jakarta - The rupiah is traded weaker 15 bps to Rp13,293 per US dollars in Jakarta inter-bank market.
Binaartha Sekuritas analyst Reza Priyambada said that the rupiah exchange rate has weakened following negative response from money market players to Bank Indonesia’s projection of the economic growth.
“Market players have responded natively to the remarks made by the Governor of Bank Indonesia who foresees Indonesia’s economic growth of around 5.1 to 5.5 percent or lower compared to the growth assumed by the government of 5.4 to 6.1 percent,” he said.
He said that market players are also keeping an eye on global sentiments particularly the upcoming Open Federal Market Committee meeting on benchmark fed funds rate.
“Amid the anticipation of FOMC policy, domestic market players tend to hold transactions which have led to weaker rupiah,” he said.
Nonetheless, he said that US dollar comes under pressure on global markets ahead of the European Central Bank policy decision and the testimony of former FBI director James Comey.
