The Jakarta Post
Bank Indonesia Governor Agus Martowardojo has assured that the rupiah will not weaken to 17,000 per US dollar, saying that the current level of nearly Rp 14,200 does not reflect the fundamental value of the currency.
“This current rate of nearly Rp 14,200 is lower than its fundamental value. No, it will not weaken to Rp 17,000,” said Agus in Jakarta on Tuesday as quoted by kontan.co.id.
He stressed that the central bank had no target in regard to the rupiah’s exchange rate, however BI would continue to carry out its job of halting further depreciation.
The currency has depreciated by 1.94 percent (month-to-date) against the dollar, according to BI. However, the rupiah’s condition is better than the Thai bath by 2.1 percent, Indian rupee by 2.5 percent and Turkish lira by 12 percent.
Meanwhile, since earlier this year, the rupiah has weakened by 4.35 percent (year-to-date), compared to the Indian rupee by 6.7 percent, Brazilian real by 12.8 percent and Turkish lira by 20 percent.
The rupiah stood at Rp 13,965 per dollar on Monday. It weakened to nearly Rp 14,200 on Tuesday and the currency exchange rate stood above Rp 14,000 per dollar on Wednesday morning. (bbn)