REPUBLIKA.CO.ID, JAKARTA -- The rupiah fell 215 points to close at Rp14,394 per dollar in the Jakarta inter-bank spot market on Thursday evening. Earlier it was traded at Rp14,179 per dollar.

The depreciation of the Indonesian currency against the US dollar was mostly influenced by external factors, particularly the imminent trade war between the US and China, Binaartha Sekuritas analyst Reza Priyambada stated.

A lack of domestic sentiment also added to the rupiah's depreciation, he added. "In addition to the trade war sentiment, the domestic sentiment is still small to push the rupiah," he remarked.

Also read: Govt reviews impact of US-China trade war

The market is waiting for Bank Indonesia's (BI's) policy to raise its benchmark rate, or BI 7-Days Reverse Repo Rate, by 25 basis points at the meeting of BI board of governors on Friday (June 29), he revealed.

According to BI mid-rate, the rupiah weakened to Rp14,271 per dollar compared to the previous closure of Rp14,163 per dollar.

Meanwhile, the composite share price index (IHSG) at the Indonesia Stock Exchange (BEI) weakened 120.23 points to 5.667,32 on Thursday evening, amidst fear over US-China trade war. It seems that fear over the US-China trade war had prompted investors to release the rupiah.

Ikuti Whatsapp Channel Republika