Rupiah Continues to Slide at Monday's Close
1 December 2014 21:10 WIB
TEMPO.CO, Jakarta - The rupiah interbank exchange rate in Jakarta slid further by 90 points at the end of Monday's trading session, down to Rp12,295 per United States (US) dollar from its previous position at Rp12,205 per US dollar.
"The US dollar's appreciation puts pressure on markets across Asia, which is negatively reflected by the rupiah's falling exchange rate," said Lukman Leong, an analyst for Platon Niaga Berjangka in Jakarta on Monday.
That said, the rupiah exchange rate was prevented from slipping further as Indonesia's recently released economic performance figures meet market expectations. Inflation is on the rise, but its increase remains within expert's projections, according to Lukman, who added that the fact that Indonesia posted a trade surplus for the period also helped curb its downwards slide.
"The rupiah is faring quite well for the time being," said Lukman.
The Central Statistics Agency (BPS) stated that the recent cuts to fuel subsidies had contributed to November's inflation figure, which stood at 1.5 percent. The average inflation figure between January-November 2014 stood at 5.75 percent, while year-on-year inflation is recorded at 6.23 percent.
Furthermore, Indonesia posted a trade surplus in October, which amounted to US$23,2 million. Exports totalled US$15,35 billion, while imports cost Indonesia US$15,33 billion in October.
An analyst for Monex Investindo Futures, Zulfirman Basir, said the government's decision to cut fuel subsidies will expedite the process of balancing Indonesia's transactional deficit. "It is hoped that this could help prevent the rupiah from slipping any further," he said.
ANTARA
