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Rupiah down to 14,178 per US dollar on Friday morning
(Courtesy of Kompas)The rupiah interbank rate weakened slightly on Friday morning amid uncertainties about the US Federal Reserve's plan to increase the interest rate
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(Courtesy of Kompas) (Courtesy of Kompas)
(Courtesy of Kompas)
The rupiah interbank rate weakened slightly on Friday morning amid uncertainties about the US Federal Reserve's plan to increase the interest rate.
The rupiah dropped four points to Rp 14,178 per US dollar during Friday morning's trade from Rp 14,128 formerly.
'The currencies of developing countries, including the rupiah, are in a disadvantaged position following uncertainties about the US Federal Reserve's plan to raise the interest rate. With such conditions, investors tend to choose the US dollar to hedge their assets,' NH Korindo Securities Indonesia head of research Reza Priyambada told Antara news agency.
He said that an increase in US unemployment figures might delay the Federal Reserve's plan. However, he added, rising inflation rates in US signaled that the interest rate hike might happen gradually.
Reza also said that the continued depreciation of Asian currencies prevented the rupiah from strengthening.
Meanwhile, Bank Himpunan Saudara forex market observer Rully Nova said that the government's plan to issue an economic stimulus package was expected to balance external negative sentiments.
'It is expected that the policy can be issued to boost economic growth, which eventually can prop up the value of the rupiah,' Rully said. (ika)(++++)
