Analyst of Valbury Asia Futures Lukman Leong attributed to the rupiah weakening to external sentiment with the financial crisis that hit Turkey .
"The Turkish financial crisis has its impact on the financial markets of developing economies including Indonesia. Investors were prompted to invest their money in safe haven assets, Lukman said here on Monday.
He said the deficit in the country`s current account balance in the second quarter of 2018 added to the negative sentiment.
Bank Indonesia recorded, the country had a current account deficit of US$8 billion in the second quarter of this year or 3 percent of the country`s GDP , up from US$5.7 billion or 2.2 percent of the GDP in the previous quarter.
Meanwhile economist of Samuel Sekuritas Ahmad Mikail said the rupiah depreciation followed the collapse of the Turkish lira as a result of high current account deficit reaching 5.5 percent of GDP in the first half of 2018 - one of the highest in the world.
The rise in the import tariffs slapped by the United States on Turkish goods - 20 percent on aluminum and 40 percent on steel were fundamental in causing the fall of lira.
"The crisis triggered capital flights from Turkey causing negative impact on other emerging markets," Mikail said.
Reporter: Zubi Mahrofi
Editor: Yosep Hariyadi
Copyright © ANTARA 2018
