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Rupiah continues downward trend Tuesday
The rupiah weakened on Tuesday afternoon from Rp 14,067 to Rp 14,097 per US dollar
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The rupiah weakened on Tuesday afternoon from Rp 14,067 to Rp 14,097 per US dollar.
'Indonesia's inflation data, which is quite stable, has not helped the rupiah to strengthen. Market players are still waiting for other domestic economic data, including on the country's trade balance, which is set to be released in the middle of this year,' PT Platon Niaga Berjangka analyst Lukman Leon said as quoted by Antara in Jakarta on Tuesday.
He said it was hoped that August's trade balance would record better results than the previous period so it could help prevent the rupiah from weakening further.
The Central Statistics Agency recorded that the inflation rate stood at 0.39 percent in August. This was the lowest August inflation in the last six years.
With an August inflation of 0.39 percent, the calendar year inflation of January-August stood at 2.29 percent, while year-on-year it stood at 7.18 percent.
Lukman said there was still speculation about whether the US Federal Reserve (Fed) would increase its interest rate in September and this attributed to the increasing value of the US dollar.
'Some finance market players still believe that the Fed will increase its fund rate in September,' said the analyst.
Lukman said that in an annual symposium, Fed vice chairman Stanley Fischer said US inflation tended to increase and this supported a gradual increase in the Fed fund rate.
He said finance market players were also still shadowed by China's economic slowdown. This situation could bring negative impacts to Asian economies.
'Market players' worries about China's economic health have led to finance markets in developing countries being suppressed. China will become a focus of attention this week, along with the Fed's statement on its interest rate,' said Lukman.
Bank Indonesia's (BI) median rate recorded that the rupiah weakened to Rp 14,081 per US dollar on Tuesday from Rp 14,027 the previous day. (ebf)
