Rupiah weakens 16 points in morning trade

Rupiah weakens 16 points in morning trade

Rupiah. (ANTARA /Sigid Kurniawan)

Jakarta (ANTARA News) - The Indonesian rupiah weakened 16 points to trade at Rp15,205 per dollar in the Jakarta spot market on Thursday morning compared to the previous close of Rp15,205 per dollar.

"The rupiah`s exchange rate fell again after the majority of global currencies depreciated against the US dollar," senior analyst of CSA Research Institute Reza Priyambada said here on Thursday.

He said the US dollar remained a safe haven currency for investors to maintain the value of their assets amidst global uncertainty although US President Donald Trump was at odds with Governor of The Fed Jerome Powell.

"Investors still believe that the US economy will continue to pick up," he said.

In the meantime,internal positive sentiments including the Trade Ministry`s optimism about achieving the target of clinching US$1.5 billion business deals in the ongoing Trade Expo Indonesia 2018 are expected to stem deeper pressure on the rupiah, he said.

Economist Ahamd Mikail of Samuel Sekuritas said the US dollar`s appreciation was also driven by expectation of The Fed rate hike which is likely to continue until 2020.

"The situation prompts investors to transfer their investment from shares to US bonds," he said.

Reporting by Zubi Mahrofi
Editing by Suharto, Andi Abdussalam