Rupiah under big pressure :BI

Jakarta (Antaranews Bali) - The rupiah exchange rate was facing considerable pressure until finally depreciating, thereby crossing a new psychological level of Rp15 thousand per US dollar on (Oct 2), the weakest in recent years, Bank Indonesia (BI) stated.

BI Deputy Governor Dody Budi Waluyo noted when contacted by Antara in Jakarta on Wednesday that the Central Bank will not remain silent and will continue to stabilize the rupiah exchange rate in the market.

"BI continues to be in the market to stabilize the rupiah, which has come under considerable pressure," Waluyo noted.

After trading at a level that penetrated Rp15 thousand per US dollar on Tuesday, the Indonesian currency this Wednesday continued to drop at the same weakening level. Until 10 a.m. WIB, the rupiah in the spot market traded at Rp15,082 per US dollar or weakened by 40 points as compared to Monday's closing (Oct 2).

After monitoring the Interbank Jakarta Refraction Spot Rate of the US Dollar (Jisdor) as announced by BI on Wednesday, the rupiah weakened 100 points at Rp15,088 as compared to Rp14,988 on Tuesday (Oct 2).

"Global and domestic factors dominate the rupiah's movement this week," INDEF economist Bhima Yudhistira stated.

According to Yudhistira, global factors include an increase in the crude oil prices of up to US$85 per barrel or a 28 percent jump in the current year (ytd) caused by reduced supply after the Iranian oil boycott called for by US President Donald Trump.

Bhima noted that domestic factors, including sentiment from the projected economic growth in the third quarter of 2018 is estimated to be 5.1 percent or lower than the second quarter of 2018, which was 5.27 percent. The deflation rate of 0.18 percent (mtm) in September 2018 also did not offer a positive sentiment. (WDY)