Rupiah weakens over high demand for dollar

Rupiah weakens over high demand for dollar

The Indonesian rupiah and the US dollar banknotes. (ANTARA PHOTO/Galih Pradipta)

Jakarta (ANTARA) - The rupiah weakened against the United States (US) dollar in the Jakarta interbank market Monday evening on high demand for the US greenback due to the global uncertainty.

The Indonesian currency fell 22 points, or 0.16 percent, to Rp14.195 per US dollar compared to Rp14.173 per US dollar earlier.

"Fear over negotiations between China and the United States failing to reach a trade agreement and political uncertainty in the United States after (the Congress) starts an impeachment inquiry into President Donald Trump has upset investors and pushed up the demand for the US dollar," PT Garuda Berjangka Director Ibrahim Assuaibi said in Jakarta Monday.

The market ignored a report that the Trump government is considering delisting Chinese companies from the US stock exchange, but investors' sentiment remained fragile, Ibrahim said.

China's chief trade negotiator Liu He is scheduled to leave for the US in October 2019 for a new round of trade negotiations.

The rupiah opened lower at Rp14.163 against the dollar Monday morning. Throughout the day, it hovered between Rp14.163 and Rp14.195.

The rupiah depreciated to Rp14.174 compared to Rp14.197 against the dollar earlier, according to the Bank Indonesia (BI) mid rate Monday.

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