The rupiah weakened against the US dollar, on Tuesday morning, as China’s economic growth continued to slow and weaken other currencies in the Asia region.
During interbank transactions in Jakarta on Tuesday morning, the rupiah traded at Rp 10,010 per US dollar, down by 20 points from Rp 9,990.
Samuel Sekuritas economist, Lana Soelistianingsih, said the rupiah had passed the psychological level of Rp 10,000 per US dollar.
“Compared to its position in the beginning of the year, the rupiah’s depreciation of 2 percent was among the smallest in the region following the Thai baht — with 1.8 percent — and the Hong Kong dollar — with 0.09 percent. China’s yuan on the other hand strengthened by 1.6 percent,” said Lana as quoted by Antara news agency.
She predicted that Bank Indonesia (BI) could bring the domestic currency rate in to the range of Rp 9,950 – Rp 9,990 per US dollar.
“The slowing of China’s economy can affect Indonesia’s balance of trade because in terms of the value of trade, China is Indonesia's biggest trade partner,” Trust Securities’ head of research Reza Priyambada said.
He said BI’s decision to increase its benchmark interest rate (BI rate) by 50 basis points to 6.5 percent had not yet pushed the rupiah back in to the positive area. (ebf)