US Dollar Weakening Still Push Down Rupiah Thursday

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  • Ilustrasi Rupiah. ANTARA/Yudhi Mahatma

    Ilustrasi Rupiah. ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta - Samuel Securities Indonesia predicts the rupiah exchange rate will be pushed by the weakening US dollar index.

    "The decline of the dollar index early Thursday morning could help strengthening the rupiah," said Samuel Securities Indonesia economist Rangga Cipta in his research on Thursday, August 20.

    Stated in the FOMC meeting minutes, the US central bank is more convinced that the Fed interest rate should rise in the near future.

    However there are still obstacles considering the low inflation rate. Shortly earlier, inflation figures were announced edged up to 0.2% YoY in July, but still far from the Fed’s long-term target of 2% YoY.

    "There is no increase in the Fed’s rate hike expectations until early this morning, seeing the dollar index and UST 10 yield that are actually down," said Rangga.

    However, he said, the sharp decline in oil prices could still maintain the rupiah weakening sentiment for commodity exporting countries such as Indonesia.

    BISNIS.COM