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Rupiah drops to multiyear low ahead of Trump's tariffs, domestic uncertainty
The national currency temporary hit its lowest rate since the 1998 Asian Financial before inching back up to Rp 16,580 per dollar on Tuesday evening, the depreciating trend caused by investors jittery about the incoming US tariffs and geopolitical uncertainty, as well as domestic pressures.
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A teller counts United States dollar and Indonesian rupiah banknotes on March 1, 2024, at a money changer in Jakarta. (Antara/Muhammad Adimaja)
T
he rupiah traded at one point on Tuesday at its weakest rate since the 1998 financial crisis as traders become wary of impending tariffs from United States President Donald Trump, geopolitical tensions and the national economy.
Investing.com readings showed that US$1 momentarily hit Rp 16,654 before easing to around Rp 16,580 per dollar by the evening on Tuesday.
At the peak of the economic turmoil nearly 30 years ago, the rupiah plunged to Rp 17,300 against the greenback before ticking up to a slightly better rate on the same day of around Rp 16,000 per dollar.
Tuesday’s reading was slightly lower than the previous high of Rp 16,640 per US dollar, recorded during the local onset of the COVID-19 pandemic in March 2020.
“In general, we see that it was brought about by the global factor that is still filled with uncertainties,” Triwahyono, director of monetary and security assets at Bank Indonesia (BI), told The Jakarta Post on Tuesday.
Read also: Prabowo says new export measure to add $80b to forex reserves
The central bank’s reference rate showed the rupiah at Rp 16,622 against the greenback on March 25.
