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JAKARTA. The rupiah exchange rate weakened on Tuesday morning to 10,485 per US dollar, in response to negative domestic and foreign sentiments.
During interbank transactions in Jakarta on Tuesday morning, the rupiah weakened 105 points to 10,485 per US dollar from 10,380.
“The rupiah market responded negatively to data about Indonesia’s balance of payments,” said Samuel Sekuritas economist Lana Soelistianingsih in Jakarta on Tuesday as quoted by Antara news agency.
She said Asian financial market corrections would continue on Tuesday and in the short term, the rupiah occupied a range that was very susceptible to pressure.
“If Bank Indonesia can significantly protect the rupiah, it will return to between 10,480 and 10,490 per US dollar. But if the external pressures continue, the rupiah is likely to move to a range of between 10,550 and 10,600 per dollar,” said Lana.
She said Asia’s largest economies, namely China, India and Indonesia, had work performances that had continued to weaken during the last four years.
According to her, China’s slowing economic growth has had a negative impact on Asian economies that have strong trade relations with the country.
With such an economic slowdown, many investors have shifted their investments from developing countries to US financial markets.
A financial market analyst from Bank Mandiri, Reny Eka Putri, added that certain US economic data, such as on employment and manufacturing growth, had improved, triggering speculation among market players that the US Federal Reserve would reduce its financial stimulus.
