Rupiah Weakens over Fed Governor's Warning

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Laila Afifa

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  • TEMPO.CO, Jakarta - The rupiah interbank rate in Jakarta fell on Thursday, May 14, following a speech by the US Federal Reserve's governor Jerome Powell. Last night, Powel said that the US central bank would take further steps to combat the country's economic downfall caused by Covid-19.

    The rupiah closed today's trade with a 0.13-percent correction to Rp14,885 per US dollar.  

    "The main sentiment for rupiah's correction today was Powell's warning of big economic risks stemming from the COVID-19 pandemic," Monex Investindo Futures chief researcher Ariston Tjendra said in Jakarta.

    However, Ariston said that the pressure on the rupiah is not too big, as many investors still have confidence over Indonesia's economy, as proven by the high demand for state bonds (SUN).

    Powell made his statement in a webcast with the Peterson Institute for International Economy (PIIE), basing it on copious data showing the country's disrupted economy.

    The U.S. has confirmed over 1.38 million cases of the new coronavirus with more than 83,000 deaths. The country also recorded 20.5 million job losses in April, with the unemployment rate rising to 14.7 percent.  

    ANTARA