TEMPO.CO, Jakarta - The rupiah fell sharply in Wednesday's trading, as the sale of rupiah-denominated assets continues.
Economist with Samuel Securities Indonesia, Rangga Cipta assumed concerns over the adverse effects of Chinese yuan devaluation made investors reluctant to held on to rupiah portfolio.
"As one of Indonesia's major trading partner, the devaluation Yuan led to the commodity exports prospect and the economy to be worse," he said to Tempo on Wednesday, August 12.
Since trading began Wednesday morning, the rupiah was opened at 13,800 per US dollar. Until 12:45 pm, the rupiah fell 212.6 points (1.56 percent) to 13,820 per dollar. Practically, the current level of rupiah is back to its lowest position since 1998.
At the currency markets, negative effects of the devaluation of the yuan also hit a majority of other regional exchange rates. Besides the yuan that fell to 6.4331 per dollar, Won was corrected 1.10 percent to 1191.93 per dollar. Ringgit, similar to the rupiah fell 1.56 percent to 4.0355 per dollar.
Due to the uncertainty of the Fed rate hike, Rangga said the rupiah is still under pressure for the medium term. The cabinet reshuffle that will be announced this afternoon, Rangga said, will not have much effect to relieve pressure on the rupiah.
PDAT | MEGEL JEKSON