Rupiah opens weaker at Rp17.995 per dollar, near 18,000
Rising energy import costs, dividend payments and foreign debt obligations are adding to domestic demand for dollars.
The rupiah weakened again on Thursday morning and opened at Rp17.995 per U.S. dollar, down 28.5 points from the previous close of Rp17.966. A day earlier, the Garuda currency had briefly touched Rp17.926 per U.S. dollar after opening at Rp17.878. Money market analyst Ibrahim Assuaibi said pressure came from higher global oil prices amid Iran-Israel tensions and stalled U.S.-Iran talks. He noted WTI at 94.58 U.S. dollars per barrel and Brent at 96.72 U.S. dollars. Higher energy prices were seen strengthening the U.S. dollar as markets expect the Fed to keep interest rates elevated for longer. At home, demand for dollars to pay for energy imports, dividends and maturing debt obligations is also weighing on the rupiah.
Sources
Earlier in this story
- Jun 10Bank Indonesia raises BI Rate to 5.5% in emergency step
- Jun 10BRI keeps MSME lending steady after BI-Rate rises 25 bps to 5.5%
- Jun 9Indonesia lifts rates to 5.5% in surprise move to shore up rupiah
- Jun 5Rupiah closes at Rp18.049 per dollar as RI stocks fall nearly 4%
- Jun 4Rupiah opens weaker at Rp17.995 per dollar, near 18,000reading now