Movement of the Rupiah Holds the Fed's Interest Rates
JurnalHub . The rupiah exchange rate movement traded between banks on Thursday, morning, weakened by 63 points to Rp 14,505 compared to the previous position of Rp 14,442 per US dollar. CSA Research Institute analyst Reza Priyambada in Jakarta on Thursday said the rupiah's currency movements were likely to be held back after the Federal Open Market Committee (FOMC) decided to raise interest rates. "The increase in Fed interest rates affects currencies in developing countries, including the rupiah. However, it is projected to be temporary," he said. The Fed raised its benchmark interest rate this year by 25 basis points to 2.5 percent. Thus, the Fed has raised its benchmark interest rate four times in 2018. According to him, the opportunity for the rupiah to appreciate again is still quite open, given the lower growth forecast of the United States in 2019 so that the Fed will not be aggressive in raising interest rates. "The negative tone will be further reduced in th...