We actually heard that Indonesia Rupiah has been experiencing its increased currency against the US Dollar, but seems like it won't last long. Today, Rupiah come back to its currency derivation against US Dollar. Even if it was not too significant, even still on the stable condition, but it was actually brought down the Rupiah to the lower level of currency.
It's not only Rupiah which has experienced the currency derivation. Other currencies were also got down today, such as Peso, Bath, Yuan, and Singapore Dollar. The derivation of Rupiah itself reached 0.4% or it was as much as 14.155 Rupiah per US Dollar. It's quite cheap when the Rupiah was converted to the US Dollar.
The Factors Affected the Rupiah Derivation
The down of Rupiah currency happened in reasons. There are factors that can affect this issue to happen. one of the factors which brought significant impact is that the strength of the US Dollar which defeats Rupiah more. US Dollar has experienced the derivation this two weeks, and this is the day of the awakening of the US Dollar.
It was not only the increase of the US Dollar, but another external factor also impacted the Rupiah. The derivation of Asian currencies also becomes the factor that leads Rupiah to get down, especially the derivation of Won of South Korea which defeat the global economic growth. This really brings effect towards Rupiah and other currencies in Asia.
At first, Indonesia Rupiah was predicted to stay in the 14.155 of its derivation. But unfortunately, today it was predicted to experience more derivation of the currency up to 14.200. even if it was a bit worrying, but the Bank of Indonesia has planned such a strategy to keep national economic stability from the inflation that may happen.
What Is Actually Bank of Indonesia Doing Right Now?
Not only to keep the stability of the national economy, but the Bank of Indonesia wanted to maintain the domestic financial market attractiveness to get back the strength of the Rupiah itself. Bank of Indonesia decided to keep the reference interest rate BI7 Day Reverse Repo Rate as much as 6%. The purpose is to keep the development of the transaction.
Even if that so, the transaction still become one of the great risks that may have a big impact on many sectors in Indonesia, especially to the Rupiah currency. Not only the Reverse Repo Rate, but Bank of Indonesia also keeps the Lending Facility interest rate as much as 6.75% and Deposit Facility Interest Rate as much as 5.25%.
Many economic masters in Indonesia said that the increase of USD currency is not the only factor that impacted the Rupiah movement. The sentiment from Europe also dominates the global financial market. so, anything happened in Europe will affect Rupiah as a whole. Take an example of the Brexit issue which hasn't found the deal and the problem-solving.
Rupiah Derivation Affected Another Sector
The derivation that happened to Rupiah will not be a single problem. This problem will definitely lead to another issue such as the derivation of IDX Composite. The IDX Composite was down as much as 75 points or equal to 1.6% to be 6.372,7. It was said that IDX Composite was in negative line all day until the stock closing.
Even if that the factor which leads IDX Composite derivation is the down of Rupiah, but it was not the only problem. IDX Composite derivation also happened because of the low economic condition of South Korea as the Fourth Strongest Country in Asia in the economic sector. In another side, the derivation in many stock sector also brings the disadvantage.