RUPIAH HITS RP 15,000 PER US DOLLAR ON TUESDAY

The rupiah weakened to Rp 15,025 per United States dollar at 11:37 a.m. on Tuesday, 0.58 percent weaker than its position the day before, according to the foreign exchange spot market.

Meanwhile, according to the Jakarta interbank spot dollar rate (Jisdor), the currency was quoted at Rp 14,988 per US dollar on Tuesday, 0.56 percent weaker compared to its position on Monday of Rp 14,905 per US dollar.

The rupiah exchange rate has hovered above Rp 14,900 since Bank Indonesia increased its seven-day reserve repo rate ( 7DRRR ) last Thursday.

The rupiah's depreciation was in line with the weakening of other Asian currencies. Bloomberg reported that only China’s renminbi strengthened against the US dollar.

Meanwhile, the US dollar index strengthened to 96.32 against other major world currencies, following the signing of a new North American trade pact involving the US, Canada and Mexico.

Securities firm Samuel Sekuritas Indonesia economist Ahmad Mikail said the US dollar index would be in the range between 95.30—95.50. He said the US dollar exchange rate would also potentially strengthen against other currencies.

“Fear of a possible budget deficit escalation in Italy has also pushed the euro down against the US dollar,” said Ahmad, in research released on Tuesday  as quoted by kontan.co.id.

Meanwhile, domestically, the deflation rate of 0.18 percent in September, as announced by Statistics Indonesia (BPS) on Tuesday, would potentially defend the rupiah from weakening further, he added.

The year-on-year (yoy) inflation rate in September declined to 2.88 percent, compared to 3.2 percent yoy in September, last year.