Rupiah Strengthens to Rp18.141 per Dollar After Record Low
Economists still see the rupiah vulnerable in a Rp18.000-Rp18.350 range, with further losses possible if the Fed raises rates.
The rupiah strengthened 43 points, or 0.24 percent, to Rp18.141 per U.S. dollar at the opening of trading on Thursday, after closing the previous day at Rp18.184 per U.S. dollar and briefly nearing its weakest level on record. Even with the rebound, pressure on the Indonesian currency is seen as unresolved. Permata Bank chief economist Josua Pardede said the rupiah remains weighed by a combination of external and domestic factors, from the Fed's policy rate holding at 3.75-4 percent and U.S. government bond yields around 5 percent to Middle East conflict that has pushed oil prices above 115 U.S. dollars per barrel. At home, he pointed to concerns over fiscal risks, the potential downgrade of the Indonesian stock market by MSCI, and foreign capital outflows.