Jakarta (ANTARA News) - Governor of Bank Indonesia (BI) Agus Martowardojo said attributed the sinking rupiah against the US dollar to external factors and it was temporary condition.
On Tuesday rupiah closed at the level of m13,542 per dollar weakening from the normal level of less than 13,300 per dollar.
"The currencies of many other countries lost value against the US dollar," Agus said speaking at a working meeting with the Budget Commission of the House of Representative here on Wednesday.
He said the US dollar gained following statement by President Donald Trump about tax reform plan which is most likely would win an approval from that countrys Parliament.
"The Fed also repeated speaking about the possibility of an increase in its Fund Rate in December," he said.
The rupiah was valued at 13,542 per dollar on Tuesday bur on Wednesday morning it regained some of its lost value to reach a level of 13,453 per dollar on Wednesday morning.
Agus said the target for the rupiah value of 14,000 per dollar as set in the 2018 state budget would be reached despite the falling value which is a temporary condition.
"We understand the target for rupiah exchange value is set at 14,000 per dollar and now it is 13,542 , but it is caused by external factors which we believe would not last too long," Agus said.
On Wednesday morning the dollar fell against world currencies including rupiah amid market expectation of US manpower data of the ADP (Automatic Data Processing) version , analysts said .
The rupiah gain , however, is expected to be limited with the statement by the US central bank that it might raise its fund rate in a bid to shore up the US economy.
Source: ANTARA News