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Rupiah gradually recovers after weakening to Rp 14,415 in morning trade
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A money changer employee serves a customer at the ITC Kuningan shopping center. (Antara/Puspa Perwitasari)
T
he rupiah was under pressure on Friday morning. It fell to an exchange rate of Rp 14,415 per US dollar at 8:59 a.m. on Friday before gradually rebounding to Rp 14,321 at 4:02 p.m. in the spot market after Bank Indonesia announced its decision to increase its reference rate.
Meanwhile, the rupiah’s Jakarta Interbank Spot Dollar Rate (Jisdor) was Rp 14,404 per US dollar on Friday after weakening 0.93 percent from the previous day.
Analyst Faisyal from investment firm Monex Investindo said the rupiah’s depreciation caused mainly by the continuing appreciation of the US dollar against other currencies as well as tense trade relations between the United States and China.
Meanwhile, internal factors weighing on the rupiah were the poor performance of Indonesian trade in May as well as the effect of the recent elections in 117 regions across the archipelago, she said as quoted by kontan.co.id.
Securities firm Samuel Sekuritas Indonesia economist Ahmad Mikail said the rupiah would soon strengthen once Bank Indonesia increased its reference rate by 25 basis points (bps) to 5 percent.
Meanwhile, the central bank’s board of governors, who were in meeting since Thursday, just announced its decision to increase its decision on its seven-day reverse repo rate by 50 bps to 5.25 percents on Friday afternoon. (bbn)
