TEMPO.CO, Jakarta - The rupiah`s interbank rate on Wednesday dropped 94 bps. The rupiah now trades for 14,383 per US dollar.
CSA Research Institute senior analyst Reza Priyambada said the rupiah took a downturn after investors begin to doubt the agreement between China and the United States to suspend the implementation of new import tariffs.
"The situation weakened the Chinese yuan, which affects the movement of numerous Asian currencies, including the rupiah," he said on Wednesday, December 5.
Another factor pushing down the rupiah is the expectation that consumer loan would decline as an impact of Bank Indonesia's (BI) aggressive interest rate policy.
Meanwhile, Samuel Aset Manajemen's economist Lana Soelistianingsih said that investors are hoping that the US$3bn global bond issuance "front-loading" by the government will help maintain the rupiah`s position—keeping it from slipping again.
"The front loading is part of the state securities (SBN) issuance in a bid to seek funds to patch deficits in the 2019 state budget, as well as to pay for the maturing SBN worth Rp825.7tn," she said.
ANTARA
