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BI intervenes as rupiah hits Rp 14,900 against dollar
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The Bank Indonesia (BI) logo is seen on the gate of its Jakarta headquarters. (Antara/File)
B
ank Indonesia (BI) intervened in the market on Tuesday morning as the rupiah weakened by 0.36 percent to Rp 14,934 per US dollar in the spot market.
BI deputy director Dody Budi Waluyo said the rupiah depreciation was again caused by global pressure, particularly the trade war between China and the United States.
“The risk of a trade war between the US and China is still affecting emerging countries,” said Dody in Jakarta on Tuesday as quoted by kontan.co.id, adding that the central bank would remain in the market to stabilize the rupiah exchange rate.
US President Donald Trump has announced new 10 percent import tariffs for 6,000 products from China effective starting on Sept. 24 and this will be increased to 25 percent early next year. Meanwhile, the Federal Reserve will also announce its monetary policy this month.
Dody expressed the hope that the external pressure would not seriously affect the rupiah rate. He said BI would discuss the issue in the monthly Board of Governors Meeting, next week.
Meanwhile, securities firm Monex Investindo Futures analyst Faisyal shared Dody’s opinion, saying that because of the trade war, the US dollar was believed to be a safe haven for investors. The other currencies in the region also weakened against the US dollar on Tuesday.
Faisyal added that the August trade deficit of US$1.02 billion announced by Statistics Indonesia (BPS) on Monday was also a source of negative sentiment toward the rupiah. “The trade deficit is not good for the rupiah amid the trade war tensions,” he added. (bbn)
