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View all search resultsRupiah retreats from 13,800/USD following reshuffle
(Courtesy of Kompas)Indonesiaâs finance market seems to have begun responding to President Joko âJokowiâ Widodoâs Cabinet reshuffle policy as the rupiah exchange rate strengthened, moving away from Rp 13,800 per US dollar, during Thursdayâs first trading session
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(Courtesy of Kompas) (Courtesy of Kompas)
(Courtesy of Kompas)
Indonesia's finance market seems to have begun responding to President Joko 'Jokowi' Widodo's Cabinet reshuffle policy as the rupiah exchange rate strengthened, moving away from Rp 13,800 per US dollar, during Thursday's first trading session.
Based on Bloomberg data at 9 a.m., as quoted by kompas.com, the rupiah strengthened to Rp 13,713 per dollar from Rp 13,800. It is expected that pressure on the rupiah will recede throughout today's trading sessions, along with price increases for a number of commodities. However, the People's Bank of China's devaluing of the yuan is widely considered to have the potential to cause difficulty to the rupiah's position in the middle term.
Following the yuan devaluation, Bloomberg says, almost all currencies in the Asia Pacific region suffered quite a sharp fall, and the prices of several commodities fell also.
On Wednesday, the Chinese yuan weakened again and thus pressure from the dollar's appreciation on developing countries continued. Not only currencies were affected, with stock indexes and bond prices also falling quite deep.
According to PT Samuel Sekuritas Indonesia research, the shock was receding early on Thursday. This could be seen in increasing commodity prices and a small decline in the US dollar index.
'Although the yuan might still weaken, depreciation pressures are predicted to slow down today,' the research said.
The rupiah hit Rp 13,900 per dollar during Wednesday's first trading session, amid sharp declines in the Jakarta Composite Index (JCI) and government bonds. President Jokowi's announcement of the reshuffle of his Cabinet at noon was not helpful, and instead worsened negative sentiment. The rupiah exchange rate finally dropped again to Rp 13,800 during yesterday's final trading session thanks to Bank Indonesia's interventions on the foreign exchange market.
Bloomberg says there is still potential for the rupiah to weaken in the future, but for Thursday's trading, its depreciation trend is predicted to calm. (edn/ebf)(++++)
