Rupiah to likely record another correction over PSBB re-imposition

 

 

Jakarta (ANTARA) – The rupiah will likely record another correction in the Jakarta interbank market on Friday amid Jakarta administration’s decision on total re-imposition of large-scale social restrictions (PSBB) in the capital since Monday (Sept 17).

At 9:44 a.m. local time on Friday, the rupiah shed 63 points, or 0.42 percent, to trade at Rp14,918 per dollar as compared to Rp14,855 earlier.

“The rupiah is likely to come under pressure today amid the re-imposition of PSBB in Jakarta that will potentially slow down the national economy,” Chief of Research and Education of Monex Investindo Futures Ariston Tjendra stated on Friday.

Furthermore, the negative sentiment, casting a pall over the movement of risk assets after US shares plunged overnight, will potentially add to the pressure.

The Wall Street closed lower on Thursday, with S&P 500 losing 1.76 percent, Dow Jones falling 1.45 percent, and Nasdaq declining 1.99 percent.

“The tense US-China relations will also exert pressure on the rupiah,” Tjendra remarked.

The rupiah’s weakening is expected to be for a short period of time if Indonesia’s economic data show better-than-projected performance.

“Moreover, a change in sentiments abroad may also alter the movement direction. For instance, the sentiment arising from the dollar’s weakening due to the worsening US economic data,” he pointed out.

Tjendra projected the rupiah to likely strengthen within the range of Rp14,750 to Rp14,950 per dollar on Friday.

The rupiah fell 56 points, or 0.38 percent, to close at Rp14,855 per dollar on Thursday as compared to Rp14,799 per dollar earlier.

 

Source: Antara News