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Rupiah weakens 57 points to Rp 13,047 on Friday morning
The rupiah interbank trade rate in Friday's first trading session depreciated by 57 basis points to Rp 13,047 per dollar from Rp 12,990 per dollar in the previous trade
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he rupiah interbank trade rate in Friday's first trading session depreciated by 57 basis points to Rp 13,047 per dollar from Rp 12,990 per dollar in the previous trade.
Chief researcher at NH Korindo Securities Indonesia Reza Priyambada said in Jakarta that the rupiah faced pressure from perceptions of possible rising demand for the greenback by end of this month to pay debts and operational costs.
"The factor of corporate demand for the dollar constitutes one of the pressures on the rupiah in the domestic foreign exchange market," Reza said as quoted by Antara news agency.
He further said that the US interest rate hike sentiment was still strong, forcing diversion of funds from risk assets to the safe haven category, including the US dollar.
"Expectation of the Fed interest rate hike has reappeared following disclosures of improving US data, including falling unemployment claims," he said.
Money market observer at Bank Himpunan Saudara Rully Nova said that the rupiah would consolidate in the middle term ahead of the introduction of structural reform by the government in the framework of safeguarding the domestic economy.
"The rupiah will strengthen in line with the introduction of structural reform," he said. (hhr)
