Indonesian Currency Weakening Sparked by Investors' Concerns over U.S. Economy

Jakarta, 12 Safar 1438/11 November 2016 (MINA) – Current plunging of the Indonesian currency rupiah against the U.S. dollar was caused by concerns among foreign investors over U.S. economic prospect, according to Indonesian Finance Minister Sri Mulyani on Friday.

“Recently, fluctuation in our financial markets has been very much affected by regional and global sentiments, such as … developing situation in U.S.,” the minister said here.

Value of rupiah plunged by almost 1.8 percent overnight to 13,417 per dollar on Friday from 13,184 on Thursday.

In response to such a development, the minister said that the government would continue enhancing the efforts to strengthen the nation’s economic fundamentals so as to gain more trust from international investors.

Also Read: Rupiah Up Slightly to Rp13,345/Dollar on Friday

The minister was confident that the national currency depreciation was only temporary.

Meanwhile, Xinhua reported from Beijing that the Chinese currency weakened against the U.S. dollar Friday to a six-year low, with the dollar riding a Donald Trump rally alongside upbeat economic data.

Experts believe there is no basis for persistent depreciation of the yuan.

The central parity rate of the renminbi lost 230 basis points, falling to 6.8115 against the dollar Friday, breaking the psychologically-important threshold of 6.80 for the first time since Sept. 2, 2010, according to data from the China Foreign Exchange Trade System. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)