Rupiah Slumps despite Forex Reserve Increase

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Markus Wisnu Murti

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  • The rupiah. TEMPO/Tony Hartawan

    The rupiah. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - The rupiah exchange rate closed down on Monday, April 8. The increasing amount of foreign exchange (forex) reserves could not help the rupiah gain, despite the US dollar index's depreciation.

    According to Bloomberg, rupiah closed today's trading with a 0.24 percent correction to trade for 14,167 per US dollar.

    "This correction is influenced by investors' avoidance of risky assets—including the rupiah—amid bad news from the geopolitical situations in Libya, uncertainties regarding Brexit, and concerns over possible financial crisis in Italy," Monex Investindo Futures analyst Faisyal said here on Monday. 

    Read: Rupiah Strongest in Asia, Apindo: Uncertainties Still in Offing

    Faisyal said the forex reserves increase at the end of Q1/2019 was unable to push the rupiah up.

    Indonesia's forex reserves stood at US$124.54 billion at the end of March, increasing from February's US$123.27bn.

    The US dollar index, which slumped over employment data, also did nothing to propel the rupiah

     

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