Rupiah Slumps to 15,963 per US Dollar

TEMPO.CO, Jakarta - The rupiah's interbank rate in Jakarta fell deeper. On Friday morning, March 20, the rupiah was traded nearly Rp16,000 per US dollar.

At 09:55 Jakarta time, the rupiah fell 0.31 percent to trade for Rp15,963 per dollar.

"For Friday's trade, the rupiah will remain under pressure at a level between Rp15,800 and Rp16,150 per dollar," TRFX Garuda Futures director Ibrahim Assuaibi predicted.

Global markets have crashed in recent weeks as investors are panicking over the Covid-19 pandemic, with governments worldwide restricting travels and outdoors activities. The situation has pushed consumers to stay at home and control their expenses. Recently, leaders of 27 European Union countries have agreed to close their border for the next 30 days.

To date, the new coronavirus has spread to more than 100 nations, killing more than 8,000 people.

"Limiting the movements of societies is aimed at protecting lives, which are more valuable than anything in the world. But we cannot deny how this will put the economy at a halt. The shadows of a recession seem to become more apparent from day to day," Ibrahim said.

Meanwhile, Bank Indonesia (BI) has just lowered its benchmark interest rate by 25bps to 4.5 percent. But the rupiah continues to weaken due to panic over the rapid spread of Covid-19.

Bank Indonesia's middle rate on Friday showed the rupiah corrected to Rp16,273 per US dollar.

ANTARA