Rupiah back in the Red on Friday's Close  

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  • Rupiah Anjlok Terburuk Sejak 1998

    Rupiah Anjlok Terburuk Sejak 1998

    TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta slipped by 81 points at the end of Friday's trading session to close at Rp 13,790 per US Dollar - down from its' previous position at Rp13,709 against the greenback.

    "Indonesia's economic fundamentals are not conducive for the Rupiah to sustain its' uptrend - this its' depreciation against the greenback," said an analyst for Platon Niaga Berjangka, Lukman Leong, in Jakarta om Friday.

    Lukman added that the Rupiah is still shadowed by the devaluation of the Yuan, whose value have been axed for the third consecutive day despite assurances from the People's Bank of China (PBoC) that it will not devalue the Yuan further.

    The Rupiah, continued Lukman, is still shadowed by the uncertainties surrounding the US Federal Reserves plan to raise its' Fund rate - which might happen as early as September, especially considering that US retail figures seems to suggest that the US economy is recovering at quite a robust rate.

    That said, further depreciation of the Rupiah was somewhat stemmed by market players' reaction to the 2016 State Budget. The Budget, which was announced earlier in the day, is deemed as quite realistic by analyst, especially in light of the increasingly more volatile global economy.

    "What's important is that the government should commit to keeping Indonesia's growth rate at 5,5 percent and inflation around 4,7 percent - as outlined in the 2016 Budget draft," said Lukman who hopes that Indonesia could benefit from its' Budget - wherein around eight percent of its' total Budget (Rp313,5 trillion) has been allocated for the construction of infrastructure projects.

    Bank Indonesia's middle rate stands at Rp 13,763 per US Dollar, down from its' previous position at Rp 13,747 per US Dollar.

    ANTARANEWS