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Rupiah weakens to 13,205 per dollar on Tuesday afternoon
The rupiah exchange rate in trades in Jakarta on Tuesday afternoon weakened by 18 points to Rp 13,205 per US dollar from Rp 13,187
Change Size
The rupiah exchange rate in trades in Jakarta on Tuesday afternoon weakened by 18 points to Rp 13,205 per US dollar from Rp 13,187.
'The rupiah had reversed to the negative area after it appreciated for a moment this morning. It was probable that the rupiah weakening was due to sentiments from the statement of US Federal Reserve (Fed) chair Janet Yellen, who was certain about a Fed fund rate hike this year,' Monex Investindo Futures head of research Ariston Tjendra said as quoted by Antara in Jakarta on Tuesday.
He said the US dollar was also pushed up after the US core inflation data increased above estimation in April.
The analyst further said several other pieces of important US economic data that would be released this week would become drivers of the financial market. These included US durable goods orders data, May's consumer confidence level survey data and April's new home sale data.
'The market will pay close attention to the data that is predicted will suffer declines compared to the previous month. The negative US data can prop up the rupiah in the future,' said Ariston.
Meanwhile, Bank Himpunan Saudara financial market analyst Rully Nova said the rupiah exchange rate had become quite stable. The government's optimism that it could achieve its economic growth target had calmed down financial market players.
Rully said ranking agency Standard & Poor's (S&P), which viewed Indonesia's debt level with quite a positive outlook, would maintain the stability of the rupiah.
'In the future, Indonesia's ranking, which is currently staying at BB+ [double B plus], has quite a big potential to increase as the government has continued to focus its attention to push forward domestic economic growth,' said the analyst.
Meanwhile, Bank Indonesia's media rate recorded the rupiah weakened to 13,192 per dollar from Rp 13,186 on the previous day. (ebf)(++++)
