Next week, the FOMC is set to discuss the Fed fund rate."Jakarta (ANTARA News) - The Indonesian rupiah closed lower at Rp14,003 per dollar in the Jakarta interbank spot market on Friday evening, down 50 points from the previous close of Rp13,953 per US dollar.
The currencies of developing countries, including Indonesia, moved in a negative area as investors tended to hold their dollars ahead of a meeting of the Federal Open Market Committee (FOMC) on December 15-16, analyst Lukman Leong of PT Platon Niaga Berjangka said.
"Next week, the FOMC is set to discuss the Fed fund rate. It (The Fed) is most likely to raise its interest rate," he said.
He said the global crude price, which plummeted to US$36 per barrel, had added to the negative sentiment surrounding the currencies of commodity producing countries, including Indonesia.
With the shortfall in global crude prices, investors perceive that Indonesia would find it difficult to improve its export performance, he said.
"The global crude prices are predicted to weaken until the end of 2015 amid worries about oversupplies," he said.
Money market observer Rully Nova of Bank Himpunan Samudra said the lack of any internal positive sentiment added to pressure on the rupiah, resulting in the currency falling to Rp14,000 per dollar.
"Indonesias balance of trade position, which will be announced next week, has received neutral response from investors in the money market. Although the balance of trade in November 2015 is predicted to record a surplus, it is not enough to maintain the rupiah in the positive area," he said.
(Reported by Zubi Mahrofi/INE/KR-BSR/A014)
Editor: Priyambodo RH
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