Jakarta –
US dollar exchange rate is still undergoing strengthening and is currently dollar AS still in the position of Rp. 14,975. Last week, the US dollar had suppressed the rupiah to a position of Rp. 15,000.
Executive Director, Head of the Department of Monetary Management of Bank Indonesia (BI) Edi Susianto said that the main trigger remains from global financial markets, particularly from the United States (US).
“Market players estimate that the US inflation rate in June 2022 will still remain high. Market participants’ estimates for June inflation range from 8.6% – 9%,” he said when contacted, Wednesday (13/7/2022).
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Edi said that it encouraged market participants to continue investing in the safe haven currency, namely the US dollar, so that the currency continued to strengthen where the USD index (DXY) rose to above 108. He said this was the highest in 20 years.
According to him, almost all emerging market currencies have weakened due to the dollar AS, including rupiah. The volatility of the rupiah exchange rate was relatively controlled.
Edi added that BI would ensure that it is in the market with triple intervention, to oversee the functioning of market mechanisms and maintain a balance of supply-demand forex in the market.
“In addition, BI ensures that the liquidity of the Rupiah is in sufficient condition to meet the needs of the economy,” he explained.
Quoted from Reuters the value of the US dollar today was recorded at Rp. 14,975. At the opening it was recorded at Rp. 14,943. For daily movements, it is predicted that Rp. 14,975 – Rp. 14,991.
CORE Indonesia Research Director Piter Abdullah revealed that the recent weakening in the rupiah was caused by the strengthening of the dollar due to the increase in Fed interest rates.
“This increase in the US dollar does not only occur in the rupiah, but also in almost all world currencies. For this there is not much that the government or BI can do,” he explained.
Watch Videos”Whoops! Rupiah is getting worse, the US dollar is almost Rp. 15,000“
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