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Rupiah falls further on Monday afternoon
Fall further: The rupiah exchange rate on Monday afternoon weakens by 53 points to Rp 14,225 per US dollar from Rp 14,172
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Fall further: The rupiah exchange rate on Monday afternoon weakens by 53 points to Rp 14,225 per US dollar from Rp 14,172. (thejakartapost.com) (thejakartapost.com)
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span class="inline inline-center">Fall further: The rupiah exchange rate on Monday afternoon weakens by 53 points to Rp 14,225 per US dollar from Rp 14,172. (thejakartapost.com)
The rupiah exchange rate on Monday afternoon weakened by 53 points to Rp 14,225 per US dollar from Rp 14,172.
'The rupiah exchange rate has continued to weaken as forex investors are still somewhat reluctant to enter markets in developing countries, including Indonesia,' Bank Himpunan Saudara finance analyst Rully Nova said as quoted by Antara in Jakarta on Monday.
'Indonesia is still thought to have obstacles in absorbing the spending budget for infrastructure,' he went on.
Rully said the government's spending budget absorption, which was still quite low, would hamper Indonesia's economic growth.
On the other side, the analyst said, market players had tended to play "wait and see", following the Central Statistics Agency's (BPS) plan to announce Indonesia's trade balance data in the middle of this month.
'The rupiah still has the potential to depreciate [...]. There is still no new sentiment that could lead to the rupiah moving in a positive direction,' he said.
Monex Investindo Futures head of research Ariston Tjendra said hopes that the US Federal Reserve (Fed) would increase its fund rate in its September meeting had increased following the growth in US jobs and minimum wage hikes. This caused the US dollar to appreciate against the rupiah again.
'The US employment sector in August has given quite a satisfying report, which supports prospects of the US fund rate hike this year,' said Ariston.
Bank Indonesia's median rate recorded that the rupiah exchange rate weakened to Rp 14,234 per dollar on Monday from Rp 14,178 on Friday. (ebf)
