Rupiah's condition worsened today. (Image via: CNBC Indonesia)

Dollar Blows Rupiah Away to Rp, 14.335

The gap between Rupiah and Dollar is getting wider as the time passed by. By Monday (17/6) morning, Rupiah was noted to weaken to Rp. 14,335, by 0.07% compared to Friday’s exchange rate, Rp. 14,325.

However, Rupiah is not alone, since there are other Asian currencies which faltered before the might of US Dollar. There are Malaysian Ringgit (-0.2%), S. Korean Won (-0,1%), Philippines Peso (-0,08%), Japanese Yen (-0,07%), and Hong Kong Dollar (-0,03%).

On the other hand, Thai Baht and Singaporean Dollar enjoyed a good time against US Dollar, rising by 0,04% each. Australian Dollar and EU Euro also appeared strong before US Dollar, rising 0.13% & 0.09% each. Great Britain Poundsterling remains the same.

Indonesian Rupiah’s fate now lies on the upcoming meeting of the Federal Reserve on 19 June.

There was speculation that regarding the slow inflation in US, The Fed will cut the benchmark interest rate. This speculation caused US Dollar's rate to go up, stronger than other Asian currencies.

Nonetheless, the speculation seemed to be invalid, considering the good performance from US’ retail sales, outnumbering April’s number by 0.2% (from 0.3-0.5% by May).

In other news, China’s production performance seems to weaken, the weakest since 2002. Due to China’s retaliatory action against US ban and tariff, they slapped tariff to their exported steel pipe for US and EU. Because of the tariff, Chinese industrial production only grew as small as 5%.

Source: https://www.cnnindonesia.com/ekonomi/20190617080911-78-403790/rupiah-tertekan-ke-rp14335-per-dolar-as-di-awal-pekan