Indonesia: Rupiah Drops to Trade for 13,791/USD

• Mar 01, 2018

TEMPO.CO, Jakarta – The Jakarta inter-bank spot dollar rate (JISBOR) showed the rupiahweakening by 35 bps to trade for 13,791 per US dollar on Thursday morning.

Binaartha Sekuritas analyst Reza Priyambada said here today that the US dollar is gaining power against most Asian currencies–including the rupiah–following The Fed’s hawkish stance.

“The market responds to Fed’s ‘hawkish’ statement by selling their emerging markets’ currencies, including Indonesia’s; putting pressure on the rupiah,” he said.

Before the US Congress, Fed chair Jerome Powell said that to maintain the US economic recovery, interest rate adjustments are required to prevent the economy from “overheating”.

From the domestic side, Reza said, market players are expecting February’s inflation data, which prompts them to hold back from buying rupiah and tend to opt for the greenback instead.

Source: https://en.tempo.co/read/news/2018/03/01/056916185/Rupiah-Drops-to-Trade-for-13791USD