Rupiah falls 27 points apparently on fed rate hike

Rupiah falls 27 points apparently on fed rate hike

Rupiah. (ANTARA FOTO/Sigid Kurniawan)

Jakarta (ANTARA News) - The Indonesian rupiah fell 27 points to close at Rp14,071 per US dollar in the Jakarta interbank spot market on Thursday evening apparently due to the Fed Rate hike.

In its summary, the Fed stated that the US economy and labor market remained strong, raising expectations that the Fed will increase its interest rate at least once again this year, analyst Ibrahim, who is also the president director of PT Garuda Berjangka, stated here on Thursday.

"The dollar strengthened apparently because the summary had calmed down the market that sticks to the view that the Fed will increase its interest rate once again this year," he noted.

In addition, the depreciation of the rupiah was also triggered by global crude price hike, which may cause the country`s trade balance to suffer another deficit, he added.

Monex Investindo Futures analyst Dini Nurhadi Yasyi remarked that the Fed will likely maintain its interest rate, but the central bank is also optimistic about the US economy.

If the US economy improves, the Fed will likely raise its interest rate once again this year, he explained.

"Therefore, the release of US economic data must be anticipated in the future. If the data are good, the interest rate will likely increase this year. If not, the Fed will maintain its interest rate," he revealed.

The rupiah opened lower at Rp14,049 per dollar in the morning. It strengthened for a while in the afternoon before it weakened. Throughout the day, the rupiah remained in the range of Rp14,041 to Rp14,075 per dollar.

Reporting by Citro Atmoko, Suharto
 

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