US Dollar Strengthened, Rupiah Weakened to Rp.13,000 per $ 1

Jakarta The Indonesian exchange rate is again pressured by the gradually strengthened US dollar. It is unquestionable that the American economy is progressing towards a positive trend, this ultimately caused for the Indonesian rupiah to fall short in its exchange value. Furthermore, China is equally progressing in terms of its economy. This counts as another challenge Indonesia ought to examine more carefully in order to prevail from the subjugation of pressured exchange rate.

Bloomberg Foreign Exchange Data on Monday (05/03/2015) revealed that by 08.00 am this morning, the Indonesian exchange rate towards US dollar is positioned at Rp 12,999 per $ 1. Thrust continued on Rupiah as it deteriorated to Rp 13.050 per $ 1 at 08.15 am.

As the clock strikes 09.45 am local time, the exchange rate remained on the Rp 13,028 per $ 1.Up until this afternoon, the market still shows a pressured rupiah exchange rate with the Rp 12,999 marked as the most ‘promising’ rate and Rp 13,052 viewed as the most undesirable.

Bank Indonesia has not published the Jakarta Interbank Spot Dollar Rate (JISDOR) reference rate yet.

An economist from PT. Bank Central Asia Tbk, David Sumual explained the two major sentiments behind the continually pressured rupiah which has started days ago.

The first sentiment comes from the United States. As seen from the data of American economy, it is evident that the economy of it is in good terms and its growth can be seen moving towards a positive trend after it met with many challenges along the way.

For example, the index data for American services escalated from 57 to 57, 1 last month in February. The wage data also shows a drastic growth to 212.000. Right now the Indonesian market is loitering for the the date on labour which will come out on Friday.

“The global sentiment is growing in a positive trend. This is the primary cause for the weakened rupiah,” he further explained.

Apart from the pressure from the United States, the other sentiment which also contributed to the continually weakening rupiah comes from China. Shortly after China’s Central Bank lowered its interest rate, rupiah was badgered. The pressure continued as China targets it economic growth to go beyond the level of 7%.

In accordance to a number of analysts and economists, that level will inevitably aid the the increase of China’s export as well as helps to smoothen the transactions in the market. (Akp/Ein)


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