Tuesday, 19 November 2019 | 15:58 WIB

Rupiah is Predicted to Edge Down by Week End

Rupiah is Predicted to Edge Down by Week End (special)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the Jakarta interbank level is predicted to weaken slightly this weekend after two consecutive days of gains.

The rupiah exchange rate on Friday (6/21/2019) morning rose 61 points or 0.43 percent to IDR 14,122 per US dollar, compared to the previous position of IDR 14,183 per dollar.

Samuel Aset Management economist Lana Soelistianingsih in Jakarta on Friday said the strengthening of major Asian currencies such as the Hong Kong dollar and Singapore dollar against the US dollar could be a sentiment for strengthening the rupiah today.

"But the rupiah has risenin the past two days, possibly today is a little weaker," Lana said.

From domestic side, the Board of Governors Meeting of Bank Indonesia (BI) yesterday decided that the 7 Days Reverse Repo Rate be fixed at six percent, as well as fixed deposit and loan facilities.

This fixed decision takes into account the potential of the current account, whose deficit could widen in the second quarter of 2019, although the BI estimates that economic growth in the second quarter of 2019 will slow due to falling export performance.

This fixed decision also considers a fixed Fed Fund Rate (FFR) decision by the US central bank, the Federal Reserve (Fed), at the FOMC meeting June 18-19 2019. Thus, BI keeps the spread of BI interest rates with FFR fixed.

However, BI signaled the open interest rate space was still open which would likely be taken when there was a confirmation that the Fed's interest rate fell.

Lana predicts today's rupiah has the potential to weaken towards a range of IDR 14,180 to IDR 14,200 per dollar.

Meanwhile, Bank Indonesia's middle exchange rate on Friday showed that the rupiah strengthened to IDR 14,116 per dollar compared to the previous day of IDR 14,236 per dollar, as quoted from Antara.