JAKARTA, KOMPAS.com – Minister of Finance (Menkeu) Sri Mulyani Indrawati together with the Financial System Stability Committee (KSSK) met President Joko Widodo at the Presidential Palace, Jakarta, Monday (23/10/2023).
On that occasion, the Minister of Finance and KSSK reported on developments in the rupiah exchange rate against the United States (US) Dollar, which has been weakening recently.
According to Sri Mulyani, the global situation has also influenced pressure on the rupiah. One of them is the condition of the US benchmark interest rate which is likely to continue to rise.
“We all know the current global phenomenon with the US facing quite persistently high inflation and quite strong economic conditions. They then issued a signal,” said Sri Mulyani on Monday.
Also read: BI Interest Rates Rise, JCI Drops 1.18 Percent and Rupiah Falls to Rp. 15,815 Per US Dollar
“Or at least the market reads that higher for longer will happen. And this is what causes a lot of capital to flow back to the United States,” he continued.
Sri Mulyani also said that the condition of the US Dollar was strong globally. So, the government is preparing policies to deal with this situation.
The policies prepared will later target the rupiah exchange rate against the dollar, inflation and the real sector.
“We have to synchronize monetary and fiscal policies so that in a situation where the trigger is a country like the US, we can mitigate and minimize the impact on the economy,” said Sri Mulyani.
“Both on the exchange rate, inflation and economic growth and financial system stability. That’s what we continue to do,” he added.
It was reported that recently the trend of weakening of the rupiah exchange rate against the US Dollar has continued.
In fact, the rupiah exchange rate has passed the level of Rp. 15,800 per US dollar.
According to Bloomberg data, as of October 19 2023, the rupiah exchange rate opened lower by 0.43 percent to Rp. 15,798 per US dollar.
Also read: There is a Hamas-Israel War, World Gold Prices Remain Above 1,900 US Dollars
The weakening of the rupiah continued at the start of trading, where up to 09.56 WIB, the rupiah depreciated 0.70 percent to a level of Rp. 15,840 per US dollar.
Money market analyst Ariston Tjendra said that the weakening of the rupiah was partly caused by the escalation of the conflict between Israel and Hamas. The conflict, which has claimed thousands of lives, has made global uncertainty even worse.
Another sentiment that is pressuring the movement of the rupiah is the yield on US government bonds which has risen again.
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2023-10-24 01:22:00
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