Rupiah closes at Rp 12,699 per dollar on Tuesday

JAKARTA. The rupiah interbank trade rate in Tuesday’s closing session depreciated by 84 basis points to Rp 12,669 per US dollar from Rp 12,585 per US dollar in the earlier trading.

“Negative sentiments toward the rupiah come from both the global and domestic markets. If the negative sentiments continue much longer, the rupiah may fall to Rp 13,600 per US dollar,” PT Platon Niaga Berjangka analyst Lukman Leong said in Jakarta on Tuesday as quoted by Antara news agency.

He said the market expectations that the US Federal Reserve would increase its benchmark interest rate had weakened currencies in emerging markets, including Indonesia.

In the domestic market, Lukman said, recent data published by the Central Statistics Agency (BPS) revealed the country’s trade balance had suffered a US$420 million-deficit in November 2014 and that the inflation rate in December 2014 stood at 2.46 percent, both factors creating negative sentiments toward the rupiah.

“With the inflation rate expected to remain high [this month] and the trade balance projected to continue to suffer a deficit [last month], pressure on the rupiah won’t let up,” he added.

Meanwhile, Bank Indonesia’s mid-rate data showed that the domestic currency was traded at Rp 12,658 per US dollar by 4 p.m. on Tuesday, down from Rp 12,589 per US dollar in the previous trading.