Rupiah falls again ahead of BI's board meeting

Rupiah falls again ahead of BI's board meeting

"The improving US economic data served as the factor prompting investors to cast doubts about the reduction of a benchmark interest rate."
Jakarta (ANTARA) - The rupiah dropped 25 points against the US dollar in the Jakarta inter-bank market, Wednesday evening, just a day before a meeting of Bank Indonesia's board of governors. The 25 point, or 0.18 percent, drop, meant that the Indonesian currency closed at Rp14,105 per dollar on Wednesday compared to Rp14,080 earlier.

The improving United States (US) housing data and the easing concerns over a slowdown in the world's largest economy had affected the rupiah's exchange rate, PT Garuda Berjangka President Director Ibrahim Assuaibi said Wednesday.

"The improving US economic data served as the factor prompting investors to cast doubts about the reduction of a benchmark interest rate," he said.

The US Department of Commerce recorded a 4.5 percent rise in the sale of new houses to a seasonally adjusted annual rate of 692,000 units last month, the highest level since November 2017. The figure is well above the forecast of 647,000 units made by economists.

The other negative sentiment that could affect the rupiah is the likelihood of a US-European Union (EU) trade war. Through his Twitter handle, US President Donald Trump raged against the EU for a slump in Harley Davidson's first-quarter profit, which was close to 27 percent.

The rupiah had traded at Rp14,091 per dollar on Wednesday morning and throughout the day it stayed between Rp14,091 and Rp14,126 per dollar.

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