Rupiah falls 31 points on global crude price hike

Jakarta (ANTARA News) - The Indonesian rupiah fell 31 points to close at Rp14,090 per US dollar in the Jakarta inter-bank spot market on Thursday evening, on global crude price hike.

"Global crude price hike posed a negative sentiment to the rupiah today," money market analyst Faisyal of Monex Investindo Futures said here on Thursday.

Global crude prices rose after Saudi Arabia, which is the worlds main oil exporter, planned to cut its crude oil exports and slash its production further.

The rupiah closed at Rp14,059 per dollar earlier.

The other cause of the rupiahs depreciation against the dollar was domestic sentiments, including the widening current account deficit which reached US$9.1 billion, or 3.57 percent of the national gross domestic product (GDP) in the fourth quarter of 2018.

Overall, the current account deficit in 2018 was recorded at 2.98 percent, compared to 1.6 percent of the GDP a year earlier.

Faisyal remarked that investors were also awaiting data on the countrys balance of trade from the Central Statistics Agency (BPS) on Friday (Feb 15) and the outcome of a meeting between Chinese President Xi Jinping and US officials, including Trade Representative Robert Lighthizer and Secretary of Treasury Steven Mnuchin.

"If the trade balance is good, then the (trade) deficit and imports will decline," he added.

Source: ANTARA News

Related posts