Entering the Beginning of the Week, Rupiah Weakened On Inflation Concerns in the United States

Employees count money at one of the foreign exchange outlets in Jakarta (Photo: Dhemas Reviyanto/Antara)

JAKARTA - The rupiah exchange rate transacted between banks in Jakarta at the beginning of the week was depressed by market concerns about rising inflation in the United States.

At 09.37 WIB, the rupiah depreciated 82 points or 0.58 percent to IDR 14,280 per US dollar compared to the position at the previous close of trade of IDR 14,198 per US dollar.

As reported by Antara, Monday, May 17, money market observer Ariston Tjendra said, the rupiah may weaken today following the weakening of the regional exchange rate against the US dollar this morning.

"Market concerns about rising inflation in the  United States could push the US dollar higher against other exchange rates today", Ariston said.

In addition, he continued, the lockdown in some neighboring countries due to the increase in COVID-19 cases also triggered a strengthening of the US dollar.

"Market concerns about a global economic downturn are driving the market to hold the US dollar as a safe asset", he added.

Ariston said the rupiah today has the potential to weaken to a range of IDR 14,250 per US dollar with potential support in the range of IDR 14,180 per US dollar.

On Tuesday, May 11, 2021, the rupiah closed stagnant or equal compared to the closing position in the previous trade at IDR 14,198 per US dollar.