The Jakarta Post
The rupiah exchange rate weakened to Rp 14,507 per United States dollar on Thursday, according to the Jakarta Interbank Spot Dollar Rate (JISDOR), marking a 0.86 percent drop from the rate on Wednesday at Rp 14,383 per US dollar.
According to the foreign exchange spot market, the rupiah stood at Rp 14,509 per US dollar at 9:28 a.m. on Thursday, compared to its position the previous day at Rp 14,403 per US dollar.
CSA Research Institute senior analyst Reza Priyambada said the change was sparked by the strengthening of the US dollar, with market players returning to a greenback that had weakened after a meeting between US President Donald Trump and Chinese President Xi Jinping.
Meanwhile, the internal positive sentiments from Indonesian macroeconomic data that had pushed the rupiah up last week were no longer there, Reza said, adding that he also did not see any new positive sentiments in Indonesia.
“The absence of positive sentiments has made market players return back to the US dollar,” Reza said as reported by tribunnews.com.
He added that a statement made by the Finance Ministry about unspent state budget funds of Rp 70 trillion (US$4.81 billion) each year over the last 10 years had been responded to negatively by market players. “It caused the rupiah to weaken further,” he said. (bbn)