Rupiah depreciation was relatively better than depreciation in neighboring countries, in that it was not too steep.Jakarta (ANTARA News) - Bank Indonesia Governor Agus Martowadojo said here on Wednesday that the Rupiah depreciated because of foreign exchange market conditions in Asia.
"Going by the year-to-date global conditions, the yen depreciated by 15 percent; the ringgit and won by 6 percent; while the Indonesian rupiah slumped by 1.5 percent. So, in general, the rupiah depreciation is in line with regional conditions," he noted.
He observed that the rupiah depreciation was relatively better than depreciation in neighboring countries, in that it was not too steep.
"BI is comfortable with the current level," he added.
Agus, however, pointed out that Bank Indonesia will keep monitoring the global economic conditions that can cause the rupiah to weaken again.
"The current trend indicates the US dollar might continue to appreciate and the interest rate might rise," he remarked.
Agus admitted that the rupiah was influenced by global economic conditions, including an improving US economy. He noted that the strengthening of the US dollar has been affecting other countries exchange rates.
According to him, the rupiah was also affected by trade account, which is feared to suffer a deficit.
"So, we must be aware of it. In general, Indonesias transactions during the third quarter are better than that in the second quarter," he said.
Based on the Jakarta Interbank Spot Dollar Rate (JISDOR), on December 10, the rupiah exchange rate stood at Rp12,336 against the US dollar.
It is down 214 points from Rp12,122 per US dollar recorded on November 22, 2014.(*)
Editor: Heru Purwanto
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