REPUBLIKA.CO.ID, JAKARTA — The rupiah exchange rate which transacted between banks in Jakarta weakened eight points to Rp14.800 per US dollar on Friday (Sept 14) morning. Previously, the rupiah exchange rate was Rp14,792 per US dollar.
According to FXTM Research Analyst, Lukman Otunuga, United States (US) central bank (The Fed) was expected to increase interest rates in September. Therefore, it would restrain the movement of the rupiah.
“The sentiment is still weighing on emerging markets, so the rupiah is still vulnerable to weakening," said Lukman on Friday (Sept 14).
Nevertheless, Lukman said the weakening of the rupiah was relatively limited due to market players' optimism for improving relations between the US and China after the submission of new trade negotiations by the US. He assessed actually the discourse in general was a positive step.
“This discourse in general is a positive step because both parties are willing to reduce tensions between the two largest economies in the world," Lukman explained.
Meanwhile, Samuel Aset Manajemen economist, Lana Soellistianingsih said the strong currency in Asia weakened together against the US dollar this morning. So that, it became a negative sentiment for the rupiah.
“Nevertheless, Bank Indonesia (BI) will still be on guard in the market to safeguard the rupiah. Even if weakened, it’s likely to move in a narrow range," Lana said.