Rupiah weakens to Rp12,247 per USD on Wednesday Evening

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  • Ilustrasi Rupiah. ANTARA/Yudhi Mahatma

    Ilustrasi Rupiah. ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta on Wednesday evening slipped by 45 poins, to trade at Rp12,247 per United States (US) Dollar at the end of Wednesday's trading session - down from its' previous position at Rp12,202 per US Dollar.

    The Head of Research at Monex Investindo Futures, Ariston Tjendra, said that the US Dollar is gaining traction against the major currencies of the world once more, as the results of the recent Fed's board meeting is due to be released.

    "Investors will attempt to deduce the stance of the Fed through the release. If the meeting indicates that the Fed plans to raise its' interest rates sooner than expected, market players may begin to buy up US Dollars," said Ariston.

    Furthermore, the decision of International Monetary Funds (IMF) to cut its' global economic growth outlook is driving the demand of 'safe haven' currencies such as the US Dollar up.

    Ariston added that the US economy - which is recovering and growing at a faster rate that the economies of Europe, Japan, and China - is appealing investors to seek out US Dollar-denominated assets, which is considered to be less risky that the Euro, Yen and/or the Yuan, which is showing signs of losing steam.

    Meanwhile, he noted that investors' confidences in Indonesia is still shadowed by Indonesia's lack of infrastructure and lax regulatory environment, which is seen as undermining the sustainability of their investments and the economy as a whole.

    "It is hoped that the next administration could solve the issue and accelerate economic growth," said Ariston.

    Bank Indonesia's middle rate on Wednesday stood at Rp12,241 per US Dollar - down from its' previous position of Rp12,190 per US Dollar.