Sunday, 05 April 2020 | 13:52 WIB

External Sentiments Continue to Weaken Rupiah Exchange Rate

External Sentiments Continue to Weaken Rupiah Exchange Rate (monex)

JAKARTA, NETRALNEWS.COM - Rupiah exchange rate at the interbank level in Jakarta is closed still declining on Thursday afternoon. The downtrend of the composite index is attributed to external sentiment

Rupiah was closed edging down by nine points or 0.06 percent to IDR14,088 per US dollar, as compared to the previous position of IDR14,079 per US dollar.

Ibrahim Assuaibi, Director of PT Garuda Berjangka, said in Jakarta on Thursday (11/14/2019) that the rupiah was corrected in line with sentiments on the US central bank. The US Federal Reserve is predicted to no longer be loose (dovish) in its monetary policies.

"US consumer prices jumped the most in seven months in October, which along with easing recession fears, supported the Federal Reserve's signal for no more cuts in interest rates in the near future," Ibrahim said.

Federal Reserve Chairman Jerome Powell on Wednesday (14/11) told Congress that the negative interest rates sought by Trump were not suitable for the US economy with sustained growth, a strong labor market and stable inflation at the moment.

Meanwhile, US-China trade negotiations have hit US agricultural purchases as China does not want a unilateral agreement with the United States.

The report came after US President Donald Trump said a trade agreement with China was "close," but gave no details and warned that he would raise tariffs on Chinese goods substantially if there was no agreement.

A Reuters poll shows most economists do not expect Washington and Beijing to reach a permanent trade ceasefire over the coming year.

In the morning, the Rupiah opened lower by IDR14,091 per US dollar. Throughout the day, the rupiah moved in the range of IDR14,083 per US dollar to IDR14,104 per US dollar.

Meanwhile, Bank Indonesia's middle rate on Thursday showed the rupiah weakened to IDR14,098 per US dollar, as compared to the previous day at IDR14,082 per US dollar, as reported by Antara.