The strengthening dollar threatens the rupiah

November 13, 2018, 01.59 PM  | Reporter: Disa Ayulia Agatha
The strengthening dollar threatens the rupiah

ILUSTRASI. Uang dollar AS


RUPIAH - JAKARTA. The United States dollar index (US) strengthened. The strengthening of the dollar caused turmoil in the currency market which affected the movement of the rupiah Tuesday (13/11) morning. Based on Bloomberg data at 10.03 WIB, the rupiah exchange rate in the spot market was at the level of Rp 14,920 per US dollar, down 0.67% from the closing Monday (12/11). But at 11.54 WIB, the rupiah weakened 0.40% at Rp 14,879 per dollar.

The rupiah exchange rate based on the Jakarta Interbank Spot Dollar Rate (Jisdor) shows a weakening of 1% to Rp. 14,895 per US dollar. At the same time, the dollar index showed a level of 97.59.

Monex Investindo Futures analyst Faisyal said the stronger dollar caused emerging market currencies to weaken. "Market participants predict the US central bank will again raise interest rates by 25 basis points by the end of the year. That's what causes the dollar index to strengthen, "said Faisyal.

If it is true that the Fed raised its benchmark interest rate at the end of the year, then the increase is the fourth time this year. This month, the Fed decided to hold interest rates.

On the other hand, there was a rest off on the market where investors left risk assets and switched to safe-haven currencies. "Wall Street's downward trend reflects this," Faisyal continued.

Now, market participants are still highlighting the issue of a trade war between China and the US which is returning to warmth ahead of the G-20 summit delegation meeting in late November.

From domestic, the market is waiting for Indonesia's trade data to be released this week. Data on the current account deficit is also considered to provide a weakening sentiment for the rupiah this week. (Translator: Barratut Taqiyyah Rafie)

 

Editor: Barratut Taqiyyah Rafie

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