Rupiah falls again during morning trading
The Jakarta Post
According to Bloomberg, the rupiah fell again 15,268 per US dollar at 10 a.m. on Thursday, or a 0.44 percent decline from the day before.
Separately, the Jakarta Interbank Spot Dollar Rate (JISDOR) quoted Thursday's rupiah rate at 15,252 per US dollar, compared to 15,215 per US dollar on Wednesday.
Analyst Faisyal of Monex Investindo Futures said the the rupiah's latest decline was sparked by worry among market players in response to the International Monetary Fund (IMF) lowering its global growth projection from 3.9 percent to 3.7 percent.
“Market players also responded negatively to the drop in global shares, particularly in US trading on Wednesday,” he said as quoted by kontan.co.id.
Meanwhile, the US Federal Reserve's signal that it would again increase interest rates in December was haunting the rupiah. Faisyal added that he did not see any domestic positive sentiment that might strengthen the rupiah.
Faisyal believed that the government’s inconsistent fuel prices had even caused negative sentiment, as market players viewed that the global crude price hike could potentially burden the state budget and current account deficit.
He had not seen any signs on Thursday that the rupiah might strengthen, but it could strengthen over the week end, depending on the US consumer price index (CPI) that would be released on Thursday night.
He estimated that the rupiah would hover between 15,220 and 15,280 per US dollar at the close of Thursday's trading. (bbn)
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