Rupiah closes at Rp 12,587 per dollar on Monday

JAKARTA. The rupiah interbank trade rate depreciated by 58 basis points to Rp 12,587 per US dollar in Monday’s closing session.

“The strong performance of the US dollar in the market has weakened the rupiah. One of the triggers of its strong performance is the euro’s depreciation in the market. A number of currencies across the globe have also been affected,” Monex Investindo Futures analyst Zulfirman Basir said in Jakarta as quoted by Antara news agency.

He added that the further depreciation of the domestic currency was due to investor anxiety over the future of the Indonesian economy.

The Central Statistics Agency (BPS) data showed that the nation’s trade balance suffered a US$420 million deficit throughout November 2014 and that the inflation rate in December 2014 stood at 2.46 percent.

“The rupiah is likely to be traded at Rp 12,520 and Rp 12,680 per US dollar in subsequent trading sessions,” he said.

Meanwhile, Bank Indonesia data showed that the domestic currency traded at Rp 12,589 per US dollar in the final trade, a 115 point drop from Rp 12,474 per US dollar in the earlier trade.