The rupiah exchange rate continued its downward trend on Wednesday afternoon following concerns that the US Federal Reserve might increase interest rates in September
he rupiah exchange rate continued its downward trend on Wednesday afternoon following concerns that the US Federal Reserve might increase interest rates in September.
The rupiah weakened by 45 points to Rp 14,099 per US dollar from its previous position at Rp 14,054.
'The US dollar strengthened against the rupiah following investors' worries about the possibility that the Fed will increase its interest rate in September,' Monex Investindo Futures head of research Ariston Tjendra told the Antara news agency.
He added that Indonesia's economic slowdown had also affected the rupiah's value.
'We hope Indonesia's economic recovery will come soon so that the rupiah can get better,' he said.
Meanwhile, BNI Asset Management senior fund manager said that the central bank's efforts to protect the rupiah had stopped the currency from depreciating further.
'BI [Bank Indonesia or the central bank] is consistent enough to keep an eye on rupiah movement so we can see that the drop in the currency's value is quite limited even though it is suffering from depreciation,' Hanif said.
BI's median rate recorded that the rupiah exchange rate weakened to Rp 14,102 per US dollar on Wednesday from Rp 14,067 in the previous day. (ika)(++++)
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