US Dollar Touch Rp 14,400

MedanBisnis – Jakarta. Exchange rate
the US dollar against the rupee has again strengthened.
Reuters, Monday (2/7) afternoon, the US dollar had reached 14 400 Rp.

The strengthening of the US dollar continued from noon at the level of 14 350 Rp at the level of 14 400 Rp. Recently, Uncle Sam's currency has dropped slightly to 14,395 Rp and 14,388 Rp.

The Bank of Indonesia (BI) is taking steps to increase the Repo rate from 7 days to 5 , 25% or increase by 50 basis points (19659003) Suahasil Nazara, head of the finance office of the Bureau of Fiscal Policy (BKF), explained that the strengthening of the US dollar was due to various factors. "If the rupee depends on the movement of supply and demand, global volatility will make some international movements of the international portfolio into the money market," said Suahasil.

Suahasil also explained that currently the US benchmark rate is even higher. % This makes market participants prefer to put money there. In addition, he said, the US central bank or the Fed would further increase its benchmark interest rate. "From the emerging market in the United States, then emerging market money has entered the United States because the US interest rate is relatively higher, will increase," he explained. 19659003] Suahasil added that the Indonesian government is still suspicious of the situation and said that BI as a political decision-maker will continue to respond to maintain the condition, "So we are constantly moving, but we are doing it," he said. 39, political authority, BI took the policy, "he said.
Abdul Hakam Najab, MP of Banggar, said that the badumption of a foreign exchange rate for the government of Banggar. year 2019 set by the government in the range of 13,700 to 14,000 Rp is not realistic.

"Today, the exchange rate is already 14,350 Rp, which means that exchange rate pressure will continue to rise, "he said at a meeting devoted to the badumptions of b budget policy at the Parliament Building, Jakarta.

According to Hakam, the exchange rate of rupiah in the future will continue to be depressed, given the US central bank, the Fed will further increase its benchmark interest rate. "So I think the goal of Rp 13,700-Rp 14,000 is already behind the train, so it should be more realistic."

According to Hakam, the exchange rate badumption in 2019 is more appropriate in the range of Rp 13,700-Rp 14,200. "It's much more realistic," he added
. The weakening of the exchange rate, according to Hakam, should also be wary of the government. "The government must really anticipate the burden of energy subsidies, the burden of debt, especially the external debt, which weighs on the government," he said.

Indonesia's Economic Reform (CORE) Piter Abdullah Redjalam predicts the move of Bank Indonesia (BI) to raise the 7-day BI reverse rate to the detriment of demand of the market. "I'm afraid this shows that BI's new policy of raising the benchmark rate by 50bps is counterproductive, the effect is negative because it's too big," he said. "In addition, continues Piter, interest rates are not the only solution for the government to resolve the issue of exchange rates.The reason for the weakening of the rupee also comes from the deficit of the balance Indonesian trade, "as well as the uncertainty caused by the global trade tension," he said, adding that external and internal factors bring down the Rupiah to 14,400 Rp. (dtf)