On Friday Rupiah Closed Slightly Weakening 0.02 Percent To Rp 13,645 Per US Dollar

Illustration. (Photo: Bank Indonesia)

JAKARTA - The rupiah exchange rate against the US dollar closed slightly lower today. Quoting Bloomberg, Friday January 17, the rupiah on the spot market closed down 3 points to Rp 13,645 per US dollar.

In percentage terms, the rupiah weakened 0.02 percent compared to the previous day's close at Rp 13,642 per US dollar.

Head of Research at Monex Investondo Futures, Ariston Tjendra, said some market players are worried about the potential friction between the US and China.

"This is because import tariffs on Chinese goods have not been removed and are waiting for a phase two agreement to be reached," Ariston told VOI, Friday, January 17.

However, this week the rupiah has strengthened quite significantly, reaching 0.92 percent. Last Friday, the rupiah closed at Rp 13,771 per US dollar.

Economist of the Institute for Development of Economics and Finance (Indef) Bhima Yudhistira said that the strengthening of the Rupiah that was too fast and excessive could make business people uncomfortable because they have to make spending adjustments in the 2020 business plan.

On the one hand, Bhima said, the strengthening of the Rupiah that is too fast needs to be considered whether it is still in line with domestic economic fundamentals. "Because if not, it will easily weaken again," he said.

Bhima said that in 2020, global economic uncertainty is still high. The government and BI need to keep currency exchange rate movements within the fundamental corridor of the domestic economy.