Rupiah Sinks Further to 15,474 per US$

TEMPO.CO, Jakarta - The rupiah starts off this week still with a depreciation against the US dollar. On the morning of Monday's trade, October 17, the exchange rate stood at Rp15,474 per US dollar. 

As of 09:10 Jakarta time, per Bloomberg's data the currency rate fell 47 points or 0.3 percent. Meanwhile, the US dollar index fell 0.29 percent to 112.98.

The rupiah's slip is joined by a number of Asian currencies. The South Korean won recorded the deepest correction with 0.51 percent, followed by the Taiwan dollar's 0.42 percent slump.

Laba Forexindo Futures director Ibrahim Ascustombi previously predicted that the rupiah might open today's trade with a volatile state, and close lower in the range of 15,410 to 15,460 per US dollar.

He said the rupiah's fluctuation would mainly be influenced by increasing market risk that comes with high inflation, increased wages, energy and food insecurities, as well as the war in Ukraine that jeopardizes global food security and nutrition crisis, with high and unstable prices of energy, food and fertilizers. 

Moreover, there are restrictive trade policies and supply chain disruptions.

"There is also the faster-than-anticipated tightening of global monetary policies, which create a threat to economic recovery. The global situation is likely to remain difficult in 2022 and may continue to be so into 2023," Ibrahim said.

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