Rupiah Sinks to Rp12,300 per US$; Lowest in 8 Years

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  • TEMPO.CO, Jakarta – The greenback gain put the rupiah in its weakest position throughout the past eight years. Throughout yesterday's trade, the rupiah was under pressure—briefly hitting a low Rp12,303 per US dollar before closing at Rp12,301.

    America's November construction spending rose to 1.1 percent gave investors additional motivation to collect dollar-based portfolios.

    Currency analyst Lindawati Susanto said the rupiah correction was also a response to China's non-manufacturing that was flat at 53.9, causing investors to become more pessimistic about the country's import prospects.

    Lindawati predicts the rupiah correction will not last long, believing that Bank Indonesia will intervene and normalize the greenback movement whilst pushing the rupiah up. These efforts, she said, will put the rupiah back in the Rp12,200-Rp12,300 zone.

    For today, Linda projected the rupiah to move in a limited range of Rp12,250 to Rp12,300 per US dollar.