Rupiah falls again on Wednesday evening to Rp14,143 per dollar

Rupiah falls again on Wednesday evening to Rp14,143 per dollar

Rupiah and dollar banknotes

Jakarta,  (ANTARA News) - The rupiah fell another 15 points to Rp14,143 per US dollar in the Jakarta inter-bank market on Wednesday evening, along with expectation of the Fed Rate hike, a market analyst said.

"The US economic data is quite good, particularly housing service data, which shows an upward trend. Also this week, the US payroll will be released and expectation (of the Fed Rate hike) is also quite good. All these have a positive impact on the dollar," PT Garuda Berjangka President Director Ibrahim Assuaibi said.

With the US improving economic data, The Fed will again discuss the possibility of raising the interest rate due to the improving economy amidst the lingering trade war, he stated.

"The lingering trade war has shown no sign of abating although it has passed the deadline. This makes investors pessimistic about trade war policies," he noted.

Moreover, the National People`s Congress in China, which discussed the country`s future economy, has set the target of its economic growth for this year at 6-6.5 percent.

"The Chinese central bank has also revised (downward) China`s economic growth at 6 percent, causing the rupiah to weaken again," he added.

The rupiah strengthened at Rp14,126 per dollar in the morning trade. Throughout the day, the rupiah stayed in the range of between Rp14,123 and Rp14,154 per dollar.

According to Bank Indonesia mid rate on Wednesday, the rupiah strengthened to Rp14,129 from Rp14,146 per dollar the day before.

Reporting by Citro Atmoko

 

Comments