Rupiah Up to Rp12,187 per US Dollar on Thursday Morning

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  • TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta on Monday morning went up by 39 points to begin trading at Rp12,187 per United States (US) dollar—up from its previous position at Rp12,226 per US dollar. 

    "The US dollar dipped against the majority of global currencies as worries of a global economic slowdown and rising inflation affect investors from around the globe," said the head of research for Monex Investindo Futures, Ariston Tjendra, in Jakarta on Thursday. 

    Ariston added that the correction to the US dollar's position is also caused by the increasing possibility that the US Federal Reserve may delay its plans to raise its core interest rate to December 2015. Previously, experts estimated that the interest rate hike would be announced in mid-2015. 

    "Investors are letting go of their US dollar-denominated assets, and choosing to wait-and-see instead," said Ariston. 

    Recent figures suggest that the US economic growth is beginning to slow down—US Department of Commerce said that retail sales slumped by 0.3 percent in September, while the US Department of Labor said that September's producer price index also slid by 0.1 percent, suggesting an overall slump in activities. 

    A market analyst from Bank Himpunan Saudara, Rully Nova, added that the inauguration of president-elect and vice president-elect Joko Widodo and Jusuf Kalla on October 20, 2014 is giving the rupiah the positive boost it needs. 

    "We hope that the inauguration goes without a hitch and does not disrupt activities in the market, and we hope that the new administration will get to work as soon as they can to implement their programs that they have announced throughout the campaign," said Rully. 

    ANTARA