Bank Indonesia Feels Rupiah Still Under Pressure

Jakarta (Antara) - As of November, the Indonesian rupiah exchange rate continues to be under pressure due to a reduction in activities at the foreign exchange market ahead of the year-end, according to Bank Indonesia. "The rupiah value is still below the normal level. Until the year-end, we continue to face pressure, especially from business corporations," the Central Bank's Executive Director of Communications, Difi A. Johansyah, stated at a press conference here on Thursday. Difi said that at the current level of depreciation, the exporters could respond positively by exchanging their foreign currencies with the rupiah. He added that in the future, if the uncertainty subsides, the rupiah's stability will return. Therefore, it is important to first stabilize the rupiah that will drive exporters to sell their foreign currencies. He remarked that pressure on the rupiah was also triggered by negative sentiment among market players towards the US plans of withdrawing its stimulus policy and Indonesia's current account deficit. Point to point, the rupiah exchange rate has weakened by 5.77 percent (month-to-month) to Rp11,963 per US dollar, or 2.42 on average (month-to-month) to Rp11,624 against the US dollar. He pointed out that Bank Indonesia believes the rupiah depreciation is still in line with the currencies of developing countries in the region. Difi forecasts that Bank Indonesia will continue to maintain the stability of the rupiah exchange rate according to its fundamental value in order to support controlled economic adjustment. The rupiah exchange rate dropped to Rp12,016 in interbank transactions on Thursday afternoon, from Rp11,990 the previous day. (*)