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Rupiah weakens to 14,220 per dollar on Monday morning
On steady decline: NH Korindo Securities Indonesia head of research Reza Priyambada says the rupiah exchange rate has moved again in a negative direction after recently released US employment data showed mixed results
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On steady decline: NH Korindo Securities Indonesia head of research Reza Priyambada says the rupiah exchange rate has moved again in a negative direction after recently released US employment data showed mixed results. (thejakartapost.com) (thejakartapost.com)
O
span class="inline inline-center">On steady decline: NH Korindo Securities Indonesia head of research Reza Priyambada says the rupiah exchange rate has moved again in a negative direction after recently released US employment data showed mixed results. (thejakartapost.com)
The rupiah exchange rate on Monday morning weakened by 48 points to Rp 14,220 per US dollar, down from Rp 14,172.
'The rupiah exchange rate has moved again in a negative direction after recently released US employment data showed mixed results, causing uncertainty about when the US Federal Reserve will increase its fund rate,' said NH Korindo Securities Indonesia head of research Reza Priyambada in Jakarta on Monday as quoted by Antara.
The analyst said the US non-farm payrolls had increased but they were still below estimated figures. Meanwhile, unemployment levels dropped in August.
On the other side, he said, the weakening of manufacturing indexes in several Asian countries, such as China and South Korea, had added negative sentiments to currencies in developing countries.
Domestically, Reza said, market players were preferring to wait for Indonesia's trade balance data for August, which would be released in the middle of September, and this had held back the rupiah from gaining strength.
'A shortage of both domestic and external positive sentiments has led the rupiah to continue experiencing pressure,' said the analyst.
Meanwhile, Samuel Sekuritas economist Rangga Cipta added that the weakening of the domestic exchange rate would make investment assets with rupiah denomination less attractive and also would affect foreign investors in Indonesia.
Rangga said market players were also still waiting for the release of Indonesia's foreign exchange reserve data, which would be available this week. He added that although Bank Indonesia had said that the country's current foreign exchange reserve was quite safe, any decline on the reserve would make foreign investors less comfortable. (ebf)
