Rupiah Comes Under Pressure as US Economic Data Improves
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3 September 2020 08:17 WIB
TEMPO.CO, Jakarta - An improvement in the US economic data applied pressure on the Indonesian rupiah traded at the Jakarta interbank market on Wednesday morning.
The rupiah plunged 78 points, or 0.53 percent, to trade at Rp14,650 per dollar at 9:15 a.m. local time on Wednesday, from Rp14,573 per dollar earlier.
Regional currencies appeared to have come under pressure against the dollar on Wednesday, chief researcher at Monex Investindo Futures Ariston Tjendra remarked.
"Appreciation of the US dollar was triggered by the rising index of the US manufacturing activities in August released overnight," he noted.
The US Purchasing Managers Index (PMI) hit a 19-month record high of 56, indicative of expansive manufacturing activities in the US.
Tjendra believes that the sentiment applied further pressure on the rupiah's exchange rate against the dollar on Wednesday. Another factor adding to the pressure was the deflation in August, suggesting no improvement in the purchasing power of Indonesians.
"However, the Fed's loose stand may prevent the rupiah from weakening further," he stated.
The rupiah fell 10 points, or 0.07 percent, to close at Rp14,573 per dollar on Tuesday as compared to Rp14,563 per dollar earlier.
Read also: Rupiah Weakens over Fed Governor's Warning
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