The rupiah weakened slightly on Wednesday to Rp 14,863 per US dollar, from Rp 14, 835 on Monday, according to Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR).
Samuel Sekuritas Indonesia economist Ahmad Mikail said the weakening trend might continue should the dollar index remain at 95.
He said the dollar was still in a strong position amid the trade war between the United States and China. “China plans to report the US to the WTO [World Trade Organization] for the US’ plan to increase import tariffs on $200 billion worth of Chinese products,” he added as reported by kontan.co.id
Ahmad also said the government’s poor debt paper sales on Wednesday had also contributed to negative sentiment.
He estimated an exchange rate of Rp 14,850 to 14,950 per dollar on Wednesday.
Meanwhile, Bank Central Asia economist David Sumual called on the government to remain alert, although previously, Nomura Holdings Inc. said Indonesia was not likely to be affected by the monetary crisis as foreign exchange reserves stood at US$117.9 billion, while the country’s debt to gross domestic product ratio was relatively low.
David said the government’s efforts to lower the current account deficit had also contributed to the positive assessment of the economy. (bbn)