TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta slipped again by 47 points at the end of Monday's, August 24, 2015, trading session - closing Rp 13,988 against the greenback as the market closes.
"The Rupiah is depreciating against the US Dollar, driven by external sentiments which drives investors to seek out safe have currencies - placing a burden on the Rupiah," said an analyst for Bank Himpunan Saudara, Rully Nova in Jakarta.
According to Rully, China - which is Indonesia's major export partner - have yet to show an improvement since its' decision to devalue its' currencies, which leads investor to perceive the Rupiah as risky, and seek out the US Dollar.
On the other hand, the lack of certainty on the US Federal Reserve's plan to raise its' Fund rate has also negatively impact the exchange rate of currencies from emerging markets.
That said, Rully appreciated Bank Indonesia's (BI) intervention in the market, where it actively buys bonds in the secondary, which has helped the Rupiah from depreciating further.
"BI is actively intervening, and it has helped the Rupiah from losing grounds against the greenback. The Rupiah is faring better, when compared to several other nations in the region," said Rully, who added that once Indonesia's planned infrastructure project is well underway, it will help improve Indonesia's economic fundamentals, which will spillover and benefit the Rupiah.
BI's middle rate on Monday, August 24, 2015, stands at Rp13,998 per US Dollar - down from its' previous position at Rp 13,895 per US Dollar.