Rupiah Plunges as Indonesia Braces for Emergency Public Restriction



Laila Afifa

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  • TEMPO.CO, JakartaThe Indonesian government's plan to impose an emergency micro restriction on public movement, known locally as micro PPKM, immediately struck a blow to its currency. Bloomberg's data showed that the rupiah closed today's trade, June 29, with a 0.28-percent correction to Rp14,485 per US dollar.

    Meanwhile, the US dollar index rose 0.11 percent to 91.986.

    TRFX Garuda Berjangka director Ibrahim Assuaibi said the main cause of rupiah's plunge was the plan to impose the stricter micro-scale restriction or PPKM. 

    External factors that are also causing the rupiah to weaken is the greenback appreciation, which resulted from escalating concerns about increasing cases in Asia. 

    "A number of countries in Asia are struggling with the extremely infectious delta variant of the new coronavirus," Ibrahim said.

    Ibrahim predicts the rupiah would fluctuate in tomorrow's trade opening and continue to weaken. "The rupiah will likely move between Rp14,470 and Rp14,520 per US dollar," he said.

    Read: Rupiah Climbs on Domestic, Foreign Sentiments