Rupiah Loses Value on External Factors

Jakarta, MINA — The Indonesian currency rupiah lost value trading at the level of 14,549 in the closing session from 14,482 per dollar earlier, Antara News reeported.

“Rupiah depreciated on tension in trade relations between the United States and China,” chief researcher of Monex Investindo futures Ariston Tjendra said here on Monday.

Ariston said the market began to worry again over the impact of the detention of the finance head of Huawei Technology Meng Wanzhou by the United States as it could fuel tension in the trade relations between the two economic giants.

However, he said, the rupiah weakening would not be too significant considering the outlook of the Fed would not be too aggressive in raising its fund rate in 2019 after data in the non-farm payroll was below expectation.

Also Read:  ECB's Negative Rates in the Eurozone Means Capital Inflows into Indonesia?

Financial market observer of Bank Woori Saudara Indonesia Rully Nova said rupiah is relatively stable.

“The government has announced a series of policies to maintain the rupiah stability,” Rully said.

The rupiah stability would strengthen the confidence of foreign investors in the country`s economy that would encourage them to return to do business in Indonesia.

Meanwhile, the middle exchange rate of Bank Indonesia on Monday showed that rupiah strengthened to the level of 14,517 from 14,539 per dollar on Dec 7. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)