Rupiah weakens to Rp14,867 per US dollar on Tuesday`s opening

Rupiah weakens to Rp14,867 per US dollar on Tuesday`s opening

A student holding Rupiah bill note . (Antara Foto/Kornelis Kaha)

Jakarta (ANTARA News) - The Indonesian rupiah has weakened by 37 points, from Rp14,830 to Rp14,867 per US dollar on Tuesday`s opening, according to the Jakarta Interbank Spot Dollar Rate.

Economist of Samuel Asset Management Lana Soelistianingsih stated here on Tuesday that the rupiah`s depreciation was affected by the weakening of some stronger regional currencies, such as the Hong Kong dollar and Singapore dollar, against the US dollar.

"Most Asian currencies, including the rupiah, have weakened against the US dollar," she noted.

Soelistianingsih has forecast that the rupiah might move in the range of around Rp14,850 to Rp14,950 per US dollar.

"However, it remains on Bank Indonesia`s (Indonesia`s central bank) watch," she added.

Apart from regional sentiments, the rupiah`s depreciation might also be caused by the market`s negative response to Indonesia`s current account deficit that widened in the third quarter of 2018, recorded at 3.37 percent of the country`s gross domestic product.

However, Soelistianingsih is optimistic that Bank Indonesia`s intervention by starting the domestic non-deliverable forward (DNDF) derivative bidding will maintain the rupiah`s fluctuation.

"DNDF transaction is a derivative instrument and an innovation of Bank Indonesia to penetrate the domestic exchange market in a bid to increase liquidity," she added.

On the other hand, the US dollar`s appreciation was forecast to sustain, following its positive inflation data in the third quarter.

"The inflation hike in the US might be an opportunity for the FED to raise its rate," Monex Investindo Futures` head of research Ariston Tjendra noted.

Reporting by Zubi Mahrofi, Azizah Fitriyanti
Editing by Azizah Fitriyanti, Bustanudin
 

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