Sunday, 23 September 2018 | 16:56 WIB

Rupiah Depreciates 7 Points to IDR13,753 on Tuesday

Illustration: Rupiah banknotes.

JAKARTA, NNC -  Rupiah exchange rate transacted interbank in Jakarta on Tuesday (3/13/2018) morning moved slightly weakening by seven points to IDR13,753 compared to the previous position of IDR13,746 per US dollar.

Binaartha Sekuritas analyst Reza Priyambada in Jakarta, Tuesday, said that the movement of the rupiah is still relatively stable, sentiment regarding the government's plan to raise fuel subsidies will maintain the purchasing power of the people which ultimately also maintains national economic growth.

"In the daily fluctuation the rupiah is indeed in the weakening area, but it is still relatively stable in line with the favorable national economy," he said.

He added that the current US dollar movement is being overshadowed by lower payroll data in the United States than before. The average wage index in February rose 0.1 percent, slower than January's 0.3 percent.

"So that condition can withstand higher US dollar rate and potentially experience a reversal of direction," he said.

On the other hand, he added, there were fears of a trade war as US President Donald Trump's protectionist policy could also contain a higher appreciation of the US dollar.

Meanwhile, Samuel Sekuritas economist Ahmad Mikail said that data on hourly wage hike in the United States that grew below expectations would encourage low inflation, a situation that eased market fears of a Fed rate hike which is expected to be no more than three times in 2018.

Domestically, he said that ahead of auction of government bonds (SUN) that may encourage foreign investors to enter the primary market of SUNs will keep the rupiah's movement stable.