[Indonesia Report] Weakening of Indonesian currency serves cause for concern

Illustration (Photo: Kompas.com)

Indonesia Rupiah is becoming weaker in the last few weeks. IDR exchange currency to US Dollar keep experiencing pressure.

Kompas.com published an article pointing out the concern on IDR currency devaluation, saying, “The rise of global negative sentiment seemed to leave no room for the rupiah to strengthen.”

Kompas.com raised a question of when Indonesia Rupiah would become stronger even in a short term?

By Monday (November 13), Indonesia Rupiah once again devalued to IDR 9.638 per US Dollar on trade according to Bloomberg.

Yesterday (November 12), Asian stocks closed weak despite a significant increase in U.S. consumer confidence.

Indonesia Stock Exchange (IHSG) weakened 0.35 percent to 4.318,59.

Crude oil prices closed in variety. Brent Prices fell 0.3 percent to US$ 109,07per barrel and WTI increased to US$ 85,62 per barrel.

Indonesian economist from Samuel Sekuritas Ekonomi, Lana Soelistianingsih, predicted that Tuesday (Novermber 13), IDR would strengthen in around IDR 9.620 to 9.630 per US Dollar.

Global Market was closed down, last night (November 12). Investors are still waiting for the talks on US budget and European Ministers meeting on Greece bail out.

This is due to the EU last meeting result. Chairman Jean Claude Junker said the aid decision for Greece worth of 31.5 billion Euros will not be disbursed until November 20^th this year.

Meidyana Rayana Intern Reporter news@theasian.asia