TEMPO.CO, Jakarta - The currency exchange rate finally broke the psychological level of Rp14,000 per US dollar. At the Jakarta Interbank Spot Dollar Rate (JISDOR) this morning, August 24, the rupiah lost 122 bps to trade at Rp14,038 per US dollar.
NH Korindo Securities Indonesia chief researcher Reza Priyambada said the greenback took a fast climb against major Asian currencies following speculations of a possibility for the Federal Reserve to jack up interest rates in September.
"Albeit doubts over a Fed Rate hike amid a slowing global economy, [that possibility] still prompted market participants to accumulate US dollars," he said.
Reza hopes that Bank Indonesia (BI) would take actions to prevent the rupiah from plunging deeper against the dollar.
Echoing a similar sentiment, Samuel Sekuritas economist Rangga Cipta said that a stabilization policy by the central bank will help prevent further declines in rupiah-denominated assets.
"For the time being, the rupiah is likely to stay under pressure," Rangga said.
ANTARA | RR