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View all search resultsRupiah weakens to 12,600 per dollar
The rupiah exchange rate traded among banks in Jakarta on Thursday morning weakened by 20 points to Rp 12,600 per US dollar from Rp 12,580
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T
he rupiah exchange rate traded among banks in Jakarta on Thursday morning weakened by 20 points to Rp 12,600 per US dollar from Rp 12,580.
"The rupiah had weakened, but it still has the potential to strengthen. We are waiting for results from the Bank Indonesia Board of Governors' meeting (RDG BI), which are predicted to maintain the central bank's benchmark interest rate (BI Rate) at the level of 7.75 percent,' Samuel Sekuritas economist Rangga Cipta said as quoted by Antara news agency in Jakarta on Thursday.
He said that it was predicted that the government's plan to reduce the price of Premium fuel would give a positive boost to the rupiah.
On the other had, the analyst continued, a decline in US retail sales could give a reason for market players to release their dollars, which would eventually lead the US currency to decline.
Meanwhile, Bank Himpunan Saudara market analyst Rully Nova said declining global oil and commodity prices have been among the factors causing the negative trend of the rupiah's value compared to the US dollar.
Rully said market players remained worried that improvements in Indonesia's current-account and balance of trade deficits would be held back because the country's exports were still dominated by commodities.
'Declining commodity prices will negatively affect Indonesia's export performance,' said the analyst.
On the other hand, Rully added, financial market players were still waiting for BI policy concerning the BI Rate scheduled to be announced later today.(ebf)
