Rupiah Spot Trade Opened Down 42pts to 14,716

TEMPO.CO, Jakarta-Bloomberg Dollar Index said at the opening Tuesday, September 29, rupiah fell 42 points or 0.29% to Rp14,716/US$.

At 8:14 am, the rupiah fell 66 points or 0.45% to Rp14,740/US$.

Samuel Securities Indonesia predicts the rupiah exchange rate on the US dollar in trading Tuesday will still be under pressure.

"In general, the dollar will come back strong in Asia, and a drastic drop in commodity prices will put pressure on the rupiah to weaken," said Samuel Securities Indonesia economist Rangga Cipta in his research Tuesday.

As expectations of US rate hikes this year continues to increase, the issue of global slowdown continues to stick, especially highlighting China's growth prospects that continue to deteriorate.

Global stock markets are still sold off along with increasing concern that rising US interest rates in the near future, it will backfire.

The dollar index was closed down until early morning, along with a sharp decline in the S&P 500. The price of oil and other commodities also dropped quite dramatically.

"(But) the dollar is still strong in Asia," said Rangga.

Rangga said the dollar strengthened in Asia until Monday afternoon, but the rupiah managed to slow down further weakening. Although selling was seen in both JCI and SUN, SUN10 year yield rose to 9.6%, to widen the distance with UST10 year to 750 bps.

“Announcement of the economic policy package II by the government [on Tuesday], will divert the attention a little from the worsening global situation which, if credible, the policy could increase expectations of future growth," said Rangga.

BISNIS.COM