Friday's Rupiah Is Projected To Move Fluctuatingly Tend To Weaken

Illustration. (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate is projected to fluctuate and tend to weaken in today's trading, Friday, November 21, after closing lower by 0.17 percent daily to the level of Rp. 16,736 per US dollar.

At the same time, Bank Indonesia (BI) Jisdor's rupiah also weakened 0.05 percent daily to IDR 16,742 per US dollar.

Currency and commodity observer Ibrahim Assuaibi said increased skepticism among Federal Reserve (Fed) officials about cutting subsequent interest rates in December obscured the monetary policy outlook. As officials remain divided between the risk of inflation still exists and signs of weakening the labor market, traders reduce expectations for further easing.

In the release of the FOMC meeting minutes in October, it was revealed that most participants rated that further interest rates would likely be appropriate over time. However, some indicated that they did not see the decline in interest rates in December as the right thing.

Most meeting participants noted that lower interest rates could increase the risk of higher inflation to protracted or could be misinterpreted as a lack of commitment to the 2 percent inflation target.

Many participants argue that based on their view, maintaining interest rates has not changed during the remainder of this year is the right move, Ibrahim said.

Ibrahim estimates that the rupiah will fluctuate this Friday, but closed lower in the range of Rp. 16,730-Rp. 16,790 per US dollar.