Rupiah Weakens  

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  • TEMPO/Dasril Roszandi

    TEMPO/Dasril Roszandi

    TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta has slid by 55 points to close at Rp12,008 per United States (US) Dollar - down from its previous position of Rp11,953 per US Dollar.

    "External factors such as uncertainties surrounding the Fed's stance on US' interest rate and the escalating geopolitical conflict between Russia and Ukraine is causing the Rupiah to lose some of its value," said Bank Himpunan Saudara analyst Rully Nova yesterday.

    Rully said the negative external sentiment can cause the global economic recovery to slow. As a result, the demand for the currencies of the developing world declines.

    Internally, the House of Representatives (DPR)'s decision to pass the bill approving indirect regional elections is causing market players to lose their confidence in Indonesia's internal conditions, which further depresses the Rupiah, according to Rully.

    "Although the sentiment is not too significant, it definitely has impacted the performance of the domestic market," said Rully.

    The Head of Research for Monex Investindo Futures, Ariston Tjendra, added that the US Dollar is gaining as positive economic outlook in the US is expected to push the Fed to increase its main interest rate faster than initially predicted.

    The US Dollar is expected to continue gaining as long as the Fed stays on track to end buybacks of obligations in October.

    Meanwhile, Bank Indonesia (BI) middle rate was reported to be at Rp12,007 yesterday afternoon.

    Antara | Zubi Mahrofi | Ruslan Burhani