JABAR EKSPRES – Currency Market Analyst Lukman Leong said the rupiah weakened as it was still pressured by disappointing retail sales data yesterday, Tuesday (13/6).
“Retail sales only rose 1.5 percent, lower than the 5 percent forecast. Underlining the weak domestic demand,” he told Antara in Jakarta on Wednesday, quoted by Jabarekspres.com (14/6).
In addition, the rupiah was also pressured by rising US bond yields after data showed US core inflation remained above 5 percent.
The rupiah exchange rate transacted between banks in Jakarta on Wednesday morning weakened 0.08 percent or 12 points to Rp14,875 per US dollar from Rp14,863 per US dollar previously.
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Although headline inflation has reached its lowest level in two years, investors still tend to wait and see ahead of tonight’s Federal Open Market Committee (FOMC) meeting.
“Rising US bond yields reflect interest rate expectations from the Fed. However, this should only be temporary ahead of tonight’s FOMC meeting,” said Lukman.
Today, the currency market does tend to mix, especially Asian currencies.
“Major world currencies are still strong against the US dollar, but Asian currencies are mixed. Rupiah, ringgit, and peso weakened, while Singapore Dollar (SGD) and Thai baht strengthened,” he said.
