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Rupiah depreciates to 13,130 per dollar
The interbank rate for the rupiah depreciated 105 points to Rp 13,130 per US dollar from Rp 13,025 on Thursday afternoon
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The interbank rate for the rupiah depreciated 105 points to Rp 13,130 per US dollar from Rp 13,025 on Thursday afternoon.
'The rupiah was pressured by the US dollar in response to Indonesia's economic situation, which is predicted to continue to slow further,' Bank Himpunan Saudara financial market analyst Rully Nova said as quoted by Antara in Jakarta on Thursday.
The analyst said market players needed certainty from the government on its commitment to develop infrastructure, which would eventually boost the economy.
Externally, Rully said US non-farm payroll (NFP) data set to be released on Friday in Jakarta was predicted to increase and this situation would trigger speculation that the US Federal Reserve (Fed) would increase its rate in the near future.
'The speculation led to high rupiah volatility. The NFP data is quite influential on world currencies as it could give indications that the Fed will increase its interest rate,' said the analyst.
Nevertheless, Rully said, Bank Indonesia (BI) would keep an eye on the domestic foreign currency market and protect the rupiah from depreciating further so that there would be no panic among financial market players.
BI's median rate recorded that the rupiah weakened to Rp 13,065 per dollar on Thursday from Rp 13,040 the previous day. (ebf)(+++)
