Rupiah depreciates to Rp14,296 per dollar on Wednesday's closing

Rupiah depreciates to Rp14,296 per dollar on Wednesday's closing

Jakarta (ANTARA) - The rupiah exchange rate traded at the Jakarta inter-bank market on Wednesday afternoon slid further by 15 points, or 0.11 percent, to Rp14,295 per US dollar, from Rp14,280 per US dollar.

"The United States gave a confirmation this week of its plans to hike the tariffs on US$200 billion of Chinese goods this Friday," PT Garuda Futures Managing Director Ibrahim Assuaibi remarked here on Wednesday.

Market players were apprehensive over China's response of contemplating to defer the travel of its key trade negotiators to Washington this week following Trump's threat.

However, China's Deputy Prime Minister Liu He has reportedly embarked on a visit to Washington to continue trade negotiations with the United States on Thursday and Friday, a statement on the website of the Chinese Ministry of Commerce stated. US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin will be attendees during the talks.

Internally, investors reacted to the release of foreign exchange reserves by Bank Indonesia (BI), reportedly US$124.3 billion in April 2019, a decline from $124.5 billion in the previous month.

"Despite it still being quite adequate, the decline in foreign exchange reserves is rather disconcerting. This is since the 'bullets' that can be used by BI to stabilize the exchange rate are reduced," Ibrahim pointed out.

The rupiah opened lower in the morning at Rp14,289 per US dollar, and during the course of the day, it hovered in the range of Rp14,289 to Rp14,315 per US dollar.

In the meantime, the middle rate of Bank Indonesia on Wednesday indicated the rupiah strengthening to Rp14,305 per US dollar than Rp14,309 per US dollar on the previous day.  

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