Rupiah weakens 43 points against USD
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The rupiah weakened 43 points to close at 13,015 per US dollar in the Jakarta interbank spot market on Friday evening, compared with the previous close of 12,972.
“The rupiahs exchange rate depreciated against the US dollar along with the weakening of exchange rates in Asia,” economist Rangga Cipta of Samuel Sekuritas said.
He said sentiment towards the upward revision of the US second-quarter gross domestic product growth was one of the factors causing the dollar to appreciate against several global currencies.
Data for US inflation rate, which is projected to increase, has boosted the dollar to move into the positive zone, Rangga explained.
After all, the relatively stable and rising crude prices and domestic optimism about the tax amnesty program has prevented the rupiah from falling further, he added.
“The condition will make the rupiah depreciate against the dollar only in a short term,” he said.
Money market expert Rully Nova of Bank Woori Saudara Indonesia Tbk said the rupiahs depreciation is relatively limited following the market expectation of a low inflation rate in September this year.
“It is expected the data for inflation rate will be released early next week (Monday),” he said.
Questions & Answers
Q.What was the closing exchange rate of the rupiah against the US dollar on Friday evening?
What was the closing exchange rate of the rupiah against the US dollar on Friday evening?
The rupiah closed at 13,015 per US dollar in the Jakarta interbank spot market on Friday evening.
Q.Which factors contributed to the US dollar appreciating against other global currencies?
Which factors contributed to the US dollar appreciating against other global currencies?
Sentiment towards an upward revision of US second-quarter GDP growth and projected increases in the US inflation rate boosted the dollar.
Q.What is preventing a more significant depreciation of the rupiah, according to Rangga Cipta?
What is preventing a more significant depreciation of the rupiah, according to Rangga Cipta?
Relatively stable and rising crude prices, along with domestic optimism about the tax amnesty program, are preventing further falls.
Q.What is the market's expectation regarding Indonesia's inflation rate for September?
What is the market's expectation regarding Indonesia's inflation rate for September?
The market expects a low inflation rate for September this year, with data anticipated early next week.
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