External Factors Trigger Rupiah`s Weakening

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  • Ilustrasi rupiah. REUTERS/Yusuf Ahmad

    Ilustrasi rupiah. REUTERS/Yusuf Ahmad

    TEMPO.CO, Jakarta - Economist, officials from Bank of Indonesia and Minister of Finance agree that the weakening of Rupiah in the past one week has been mostly caused by external factors.

    In fact, the country’s economy has been considered positive to control the weakening of the currency and compared to other countries in Asia, Rupiah is considered stronger.

    "In the depreciation aspect, Rupiah is still slightly better than other currencies in the region,” said economist from Permata Bank, Josua Pardede on Friday. Josua referred to three Asian currencies: South Korea’s won, Thailand’s bath, and Malaysia’s ringgit.

    The weakening of those regional currencies, Josua said, reinforced the argumentation that th external factor, which is the plan of the US Central Bank Federal Reserve to raise interests, has triggered the depreciation of those currencies.

    For the record, Rupiah is traded at Rp13,900 per US Dollar, as the weakening trend of other Asian currencies continued.