Global condition still determines exchange rate

Global condition still determines exchange rate

Bambang Brodjonegoro. (ANTARA)

In addition to global economic uncertainty, we are still fighting against growing inflation."
Jakarta (ANTARA News) - Acting chief of the Finance Ministry`s Fiscal Policy Agency Bambang Brodjonegoro said he was not worried about rupiah falling to cross the psychological level of 10,000 per US dollar.

The global economy is still hit by turbulence, Bambang said here on Monday, adding "it is just a condition we have to face."

He said the possibility is still high of rupiah losing more value against the US dollar.

"In addition to global economic uncertainty, we are still fighting against growing inflation," he said.

Rupiah lost more value on Monday closing at 9,990 per US dollar in inter-bank transaction on Chinese economic slowdown from 9,985 earlier.

"Rupiah still tends to weaken on fear of the impact of the Chinese economic slowdown which could result in falling demand for the country`s exports,"Monex Investindo Futures` analyst Ariston Tjendra said.

China is the market for 11 percent of the country`s export commodities outside oil and gas, Ariston said.

China`s economic growth fell to 7.5 percent in the second quarter from 7.7 percent in the previous quarter.

The increase in Bank Indonesia benchmark interest rate (BI rate) from 6 percent to 6.5 percent was enough to curb inflation but not enough to ease the market worries with the imbalance of pressures on the rupiah, he added.
(Uu.H-ASG/H-YH)

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