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Rupiah weakens to 13,995 per dollar on Monday morning
The rupiah exchange rate traded among banks in Jakarta on Monday morning weakened by 5 percent to Rp 13,995 per US dollar from Rp 13,990
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he rupiah exchange rate traded among banks in Jakarta on Monday morning weakened by 5 percent to Rp 13,995 per US dollar from Rp 13,990.
Monex Investindo Futures head of research Ariston Tjendra said in Jakarta on Monday that the newly released estimated US gross domestic product (GDP) data for the second quarter, which stood at 3.7 percent (better than market projections), had become one of the reasons that the dollar appreciated against the rupiah.
'That result supported the strengthening of the US dollar. Improved US economic data in the second quarter has given the US Federal Reserve [Fed] good reason to increase its fund rate in September. The Fed is scheduled to hold a Federal Open Market Committee (FOMC) meeting on Sept. 16-17,' said the analyst as quoted by Antara.
He said investors were currently also waiting for more US economic data, namely non-farm payrolls, which would be released later this week and which would be used to predict the Fed's next step.
Meanwhile, NH Korindo Securities Indonesia head of research Reza Priyambada said the rupiah had consolidated ahead of the release of domestic economic data on Tuesday.
'Rupiah movement can reverse and strengthen against the US dollar if the released domestic economic data shows positive results, for instance, a low inflation rate,' said Reza.
The analyst further said that despite a lack of positive domestic sentiments, expectations of positive domestic economic data caused the strength of the US dollar to be limited in comparison to the rupiah, ultimately preventing the rupiah from depreciating further than it already had.
Reza said it was expected that the government's plan to release an economic policy package as a response to the current global crisis could also support the rupiah against the US dollar. (ebf)
