Rupiah weakens to Rp17.977 per U.S. dollar on Monday morning
Markets are now awaiting Bank Indonesia's July 22 policy meeting, with the benchmark rate expected to rise to 6 percent.
The rupiah weakened on Monday morning by 56 points, or 0.31 percent, to Rp17.977 per U.S. dollar, from the previous close of Rp17.921 per U.S. dollar. Pressure came from global sentiment after the escalation of the conflict between the United States and Iran pushed oil prices higher and strengthened the dollar index. Bank Woori Saudara analyst Rully Nova expects the rupiah to move in a range of Rp17.900 to Rp18.000 per U.S. dollar. On the domestic side, market participants are also awaiting the outcome of the Bank Indonesia Board of Governors meeting on Wednesday, July 22, with the benchmark interest rate projected to rise to 6 percent in response to inflation, rupiah weakness and stock market volatility. By the close of trading on Monday, the rupiah was at Rp17.948 per U.S. dollar.