Friday, 20 May 2022 | 17:08 WIB

Rupiah Opens Weaker on Wednesday Morning

Rupiah Opens Weaker on Wednesday Morning

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the inter-bank level in Jakarta is opened lower again on Wednesday morning, as market players are avoiding risky assets.

At 09:45 Indonesian Western Time, the Rupiah had weakened by 43 points or 0.3 percent to the position of IDR14,315 per US dollar, as compared to IDR14,273 per US dollar on the previous day's trade closing.

Money market observer Ariston Tjendra said the strengthening of the rupiah on Tuesday (05/18) was not very convincing, and the Indonesian currency only saw a slight gain. This could give an indication that the opportunity for rupiah depreciation is still open.

"This morning, market players were seen avoiding risky assets with the weakening of the Asian stock index, which followed yesterday's dip of the United States (US) stock index. This might depress the rupiah exchange rate against US dollar today. Market concerns about rising inflation in the US may trigger risk-averse action ," Ariston said in Jakarta, on Wednesday (05/19/2021).

Ariston also said the US dollar index still looks weak. The market still thinks the US central bank, The Fed, will not change its monetary easing policy in the near future as US employment data has not shown a recovery like before the pandemic.

"This may prevent the rupiah from weakening significantly," said Ariston, as reported by Antara.

Market players are also looking forward to the minutes of meeting of the US monetary policy meeting which will be released early this morning. The market still wants to confirm the central bank's stance on the current increase in the rate of inflation in the US, whether there are signals of monetary tightening or not.

Ariston said that the rupiah has the potential to weaken today to the range of IDR14,330 per US dollar, with potential support at the range of IDR14,270 per US dollar.

On Tuesday (05/18), the rupiah was closed rising by 10 points or 0.07 percent to IDR14,273 per US dollar, ascompared to the position at the previous trade closing of IDR14,283 per US dollar.