REPUBLIKA.CO.ID, JAKARTA — The rupiah exchange rate weakened by 64 points to Rp 14,546 on Tuesday's opening at the Jakarta Interbank Spot Dollar Rate. CSA Research analyst Reza Priyambada said rupiah might continue to weaken due to the lack of positive sentiment.
“For that reason, it’s expected that rupiah exchange rate can absorb USD weakening sentiment against a number of other major global currencies to hold further weakness," Reza said on Tuesday (July 24).
Rupiah is predicted to move around Rp 14,492 per US dollar to Rp 14,477 per US dollar. Previously, although the rate of US dollar weakened against a number of major world currencies, but it has had a relatively minimum impact on the rupiah.
Rupiah has depreciated again after House of Representatives (DPR) Budget Committee held Conclusion Committee Meeting with the Government on the discussion of the conclusions of the Semester I realization report and the Second Semester II National Budget projection. The House doubted the achievement of 2018 economic growth of 5.4 percent.
Meanwhile, Indonesian Composite Index (IHSG) at Indonesia Stock Exchange (IDX) opened up by 18,61 points to 5.934,41 in line with the strengthening of regional stock exchanges. In addition, the group of 45 leading stocks or LQ45 moved up 3,56 points (0,38 percent) to 940,53.
Coordinating Economic Affairs Darmin Nasution said government will try to improve the condition of Indonesia's trade balance. He said it can stabilize the rupiah exchange rate from external pressure.
"If the trade balance is surplus, then the capital flow will be reduced," Darmin said.
Darmin said that currently Indonesia faced pressure from trade war and normalization of monetary policy of developed countries. In addition, Indonesia faced a trade balance deficit mainly due to the oil and gas trade deficit.