Jakarta, The Indonesia Post – The rupiah exchange rate (exchange rate) transacted between banks in Jakarta on Tuesday morning weakened, in line with the escalation of geopolitical conditions between Russia and Ukraine.
The rupiah moved down 24 points or 0.17 percent to Rp14,352 per US dollar compared to the position at the previous close of trading at Rp14,328 per US dollar.
“The rupiah exchange rate still has the potential to weaken today with the increasing tension between Russia and Ukraine,” said money market analyst Ariston Tjendra when contacted in Jakarta, Tuesday.
Earlier this morning Russian President Vladimir Putin issued a decree ordering Russian troops to enter the two disputed areas of eastern Ukraine in order to maintain peace.
Russia will recognize the two disputed territories, Luhansk and Donetsk, as independent from Ukraine.
“Russia’s attitude immediately sparked concerns among financial market participants that a major war would occur and pushed market participants out of risk assets,” said Ariston.
Meanwhile, from within the country, the number of daily confirmed cases of COVID-19 positive in the country on Monday (21/2) yesterday reached 34,418 cases bringing the total cases to 5.23 million. Especially for the positive cases of the Omicron variant, it has reached 6,257 cases.
“Starting the decline in cases of COVID-19 transmission, it can help stop the rupiah from weakening,” said Ariston.
Ariston estimates that today’s rupiah will weaken to the range of Rp. 14,380 per US dollar to Rp. 14,400 per US dollar with potential support in the range of Rp. 14,320 per US dollar.
On Monday (21/2), the rupiah closed down 1 point to a position of Rp. 14,328 per US dollar compared to the position at the close of the previous trade of Rp. 14,327 per US dollar. (ojn/bbs)
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