The rupiah interbank trade rate in Thursday's first trading session depreciated by 44 basis points to Rp 13,069 per US dollar from Rp 13,025 per dollar in the previous trade
he rupiah interbank trade rate in Thursday's first trading session depreciated by 44 basis points to Rp 13,069 per US dollar from Rp 13,025 per dollar in the previous trade.
"Expectations for the strengthening of the rupiah have not materialized despite the unfavorable data on the US economy," NH Korindo Securities Indonesia head of research unit Reza Priyambada said as quoted by Antara news agency.
According to him, worries among investors about the possible sluggishness of the domestic market constituted one of the major factors affecting the rupiah exchange rate.
Reza hoped that the government would be able to optimally spend its budget for infrastructure development and in other productive sectors.
Bank Mandiri foreign exchange analyst Rully Arya Wisnubroto predicted the dollar would strengthen in a limited way, following the release of the poor data on the US economy.
He said that one of the economic factors that pushed the dollar to correct was the balance of trade in March, which jumped to US$51.4 billion from $35.9 billion in February.
"Sluggishness in the US economy sparks expectations that the Federal Reserve will postpone the planned hike of interest rates next June," he said. (hhr)
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.