The rupiah exchange rate against the United States (U.S.) dollar has weakened sharply again due to global sentiment, with the Indonesian Central Bank (BI) revealing that the rupiah depreciation was triggered by the trade tariff policy announced by President Donald Trump.
Head of BI's Monetary Management Department, Edi Susianto, said that the rupiah's weakening occurred due to the strengthening of the U.S. dollar triggered by the new tariff policy implemented by the Trump administration.
The trigger factor is still related to Trump's tariff policy which will ultimately impose a 25-percent tariff on Canada and Mexico, and 10 percent on China. Trump also threatened to impose a 25-percent tariff on European Union countries.
“These factors caused the DXY (U.S. Dollar Intex) to strengthen against almost all currencies," Edi said as quoted by Reuters, on Friday, February 28, 2025.
Responding to this situation, BI emphasized its commitment to maintaining the stability of the rupiah by intervening in the foreign exchange market.
"Of course BI continues to monitor. We will ‘boldly’ enter the market to maintain the balance of foreign exchange supply-demand so that market confidence is maintained," Edi said.
Based on Refinitiv data, the rupiah opened 0.46 percent weaker at Rp16,520 per U.S. dollar on Friday, February 28, 2025. This position is the lowest since March 23, 2020 or in the last five years.
Meanwhile, the U.S. dollar index (DXY) was recorded to have increased slightly by 0.04 percent to 107.29 at 08.54 a.m., higher than Thursday's position at 107.24.
Already have an account? Sign In
-
Start reading
Freemium
-
Monthly Subscription
30% OFF$26.03
$37.19/MonthCancel anytime
This offer is open to all new subscribers!
Subscribe now -
Yearly Subscription
33% OFF$228.13
$340.5/YearCancel anytime
This offer is open to all new subscribers!
Subscribe now
Set up email notifications for these topics
