Rupiah Monday afternoon weakened to Rp14.390

INDUSTRY.co.id - Jakarta - The rupiah exchange rate traded between banks in Jakarta, Monday afternoon, closed down by 60 points to Rp14,390 compared to the previous position of Rp14.330 per US dollar.

Bank Mandiri Money Market Analyst Rully Arya Wisnubroto said on Monday (2/7/2018) that the depreciation of the rupiah is still dominantly influenced by external factors, especially the potential of US and Chinese trade wars.

In addition, the weakening of the Rupiah against the US dollar has not been able to lift by domestic sentiment.

"It's more global sentiment, domestic sentiment is not good," Rully said when contacted by Antara.

Central Bureau of Statistics (BPS) has just released inflation in June 2018 which was recorded at 0.59 percent. Thus, the inflation rate in the calendar year of January-June 2018 was recorded at 1.90 percent and year-on-year inflation (yoy) was 3.12 percent.

"Inflation is higher than expected," Rully said.

In the middle rate of Bank Indonesia (BI) itself on Monday, recorded Rupiah exchange rate moved up to position Rp14.331 compared to the previous position of Rp14.404 per US dollar.

Previously, at the end of last week, although the benchmark interest rate has been raised by 50 basis points or in accordance with the market's desire to dampen the weakening of the Rupiah deeper, but not much impact on the movement of Rupiah which only rose slightly.

Market participants are still looking at the development of the potential for a trade war between the US and China so that demand for safe-haven currencies is still greater. (Ant)