Jakarta (ANTARA News) - The rupiah fell 172 points to close at Rp14,314 per US dollar in the Jakarta inter-bank market over the weekend, as the US dollar strengthened after the euro and pound sterling were corrected, a money market analyst said.
"The rupiah weakened as it shoulders the appreciation of the dollar. Moreover, the market was disappointed with ECB (European Central Bank because they still need stimuli," Dini Nurhadi Yasyi of Monex Investindo Futures said here on Friday.
The massive abolition of stimuli in December 2018 failed to support the Euro Zone economy. In fact, ECB once stated it has been suffering a recession since late last year, causing the euro to nosedive and influencing the US dollars appreciation, Dini said.
The other currency that also weakened is the pound. The market is also still skeptical about the Brexit outlook, which remains unclear. Next week, the British Parliament will conduct another voting, with the first choice being a no-deal Brexit and the second choice being Britains suspended exit from the European Union.
All the choices tend to turn into negative sentiments for the pound, he said.
He said the rupiah weakened due to the global economic slowdown, including in China, which has slashed its economic growth target for this year.
Source: Antara News