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Rupiah Weakens ahead of Election
Uang kertas rupiah pecahan Rp 1.000, dengan gambar Tjut Meutia. ANTARA/M N Kanwa
Tuesday, 14 February, 2017 | 13:02 WIB
Rupiah Weakens ahead of Election

TEMPO.CO, Jakarta - The rupiah weakens against the US dollar a day before the nation-wide regional head's elections tomorrow, February 15. All eyes will be on the Jakarta Gubernatorial Election especially.

The political event is expected to influence sentiments in financial markets, as well as the currency exchange.

Bank Indonesia's (BI) mid rate yesterday recorded to the rupiah falling 12 bps from last week's Rp13,308/US$ to Rp13,330/US$. This morning, the rupiah opened at Rp13,330/US$. 

Also read: Foreign Investments on Hold Until Election Over


The rupiah fell as the greenback regained strength in Asian markets At the same time, state bond (SUN) yield rose along with the Jakarta Composite Index's (JCI) significant gain on Monday. 

Samuel Sekuritas economist Rangga Cipta said investors are waiting for trade information that will be released on Thursday. The market is also waiting for the result of BI's board of governors' meeting, expecting the 7 Days Repo Rate (7DRR) to be kept at 4.75 percent.

"Uncertainties about the Jakarta Gubernatorial Election's result—mixed with the US dollar appreciation—is expected to keep the rupiah under pressure," he said on Tuesday. 

The US dollar index is reported to remain on an uptrend after The Federal Reserve's governor Janet Yellen tonight.  Meanwhile, the euro weakened over the European Commission's gloomy outlook on the EU's 2017 growth prospects due to political uncertainties in the UK and the US.


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