TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Rupiah weakens to 11,764 per dollar Wednesday morning
The rupiah interbank trade rate depreciated by 19 basis points to Rp 11,764 per US dollar on Wednesday morning
Change Size
The rupiah interbank trade rate depreciated by 19 basis points to Rp 11,764 per US dollar on Wednesday morning.
Platon Niaga Berjangka analyst Lukman Leong said the domestic currency had tended to weaken since market players were waiting for the formation of the new Cabinet.
"The rupiah is tending to depreciate also because many currencies across Asia weakened this morning," Lukman said in Jakarta on Wednesday as quoted by Antara news agency.
In addition, he said that Indonesia's economic fundamentals at present did not support the rupiah.
The market players projected inflation rate would be high in the coming months following the central government's plan to raise base electricity prices (TDL) in October and state oil and gas firm PT Pertamina's plan to increase the 12-kilogram Liquefied Petroleum Gas (LPG) canister price this month.
"We are hoping that the government will be able to stabilize the inflation rate so that the figure is not higher than 4.5 percent with plus and minus 1 percent," he said.
Separately, Bank Himpuan Saudara analyst Rully Nova said that improvements in the US economy had pressured global currencies, including the rupiah.
"If the US central bank increases the Fed rate, foreign capital will flood into the US market and leave emerging markets like Indonesia," Rully said. (nfo)
