Rupiah Opened Weakened To Rp14,078 per US Dollar

The rupiah exchange rate was recorded at the position of Rp14,078 per US dollar (US) in spot market trading Friday (2/22) morning. That figure was slightly weaker at 0.05 percent compared to the closing on Thursday (21/2), namely Rp14,072 per US dollar.

This morning, most of the major Asian currencies registered weakening against the US dollar. The Japanese yen weakened 0.03 percent while the Singapore dollar and Malaysian ringgit slipped 0.03 percent and 0.05 percent. Finally, the Philippine peso dropped 0.07 percent.

However, there are also several Asian currencies that have strengthened, such as the South Korean won and the Thai baht which rose 0.04 percent respectively.

Meanwhile, the currencies of developed countries rose against the US dollar, such as the Euro and the Australian dollar which rose 0.05 percent and 0.22 percent respectively. On the other hand, the British pound showed no movement at all against the US dollar.

Head of Monex Investindo Research Ariston Tjendra said the rupiah today was still affected by the minutes of the Federal Open Market Committee (FOMC) team on Wednesday night (21/2). At the meeting, US Federal Reserve officials were still assessing whether or not the Fed Rate benchmark interest rate should be increased this year.

Whereas before, Fed Governor Jerome Powell said the Fed would be more patient in carrying out monetary policy this year. In the end, this again opens the potential for a Fed rate increase at least once this year which is likely to occur at the end of the year.

In addition, market participants are also starting to worry about global developments after some research shows this potential. Thus, there is still the potential for the rupiah to weaken again today.

“Everything is fixated on the weakening of global economic growth, so maybe today the rupiah will consolidate like yesterday, which is in the range of Rp14,030 to Rp.14,100 per US dollar,” Ariston told CNNIndonesia.com, Friday (2/22).