JAKARTA, NNC – Jakarta’s rupiah exchange rate on Friday (5/11/2018) morning, moved up by 25 points to IDR14,048 compared to the previous position of IDR14,073 per US dollar.
Samuel Sekuritas’ economist, Ahmad Mikail in Jakarta said Friday that the US dollar is moving weaker against a number of world currencies after the release of inflation data in the United States is lower than market expectations.
“Inflation in the US in April was just 0.2 percent, below expectations of 0.3 percent,” he said.
He added that the below expectation inflation data led to a decline in US bond yields to 2.96 percent, thus maintaining the movement of the rupiah.
He said that the possible increase in the BI rate of 7-Day Repo Rate helped maintain the stability of the rupiah movement.
Head of Research at Monex Investindo Futures, Ariston Tjendra added that the below expectation US inflation data makes the Fed’s inflation target at two percent to be potentially unattainable.
“The US dollar is likely to weaken in response to the data,” he said, as quoted by Antara.