Jakarta, The Indonesia Post – The rupiah exchange rate transacted between banks in Jakarta before the weekend closed higher, overshadowed by the conflict between Russia and Ukraine.
The rupiah closed up 27 points or 0.19 percent to a position of Rp. 14,364 per US dollar compared to the position at the close of the previous trade of Rp. 14,391 per US dollar.
“The dollar weakened against other currencies as investors continue to reassess the situation surrounding Russia’s invasion of Ukraine and further Western sanctions against Russia,” said Ibrahim Ascustombi, analyst and director of PT TRFX Garuda Berjangka in Jakarta, Friday.
In the biggest attack on a European country since World War II Russia launched an attack on Ukraine on Thursday (24/2).
Tens of thousands of people have fled their homes and Ukrainian troops are fighting on various fronts.
The United States responded by imposing sanctions on Russia and blocking Russia’s access to foreign currency, in addition to sanctions against state-owned banks and companies.
US President Joe Biden has imposed more sanctions on Russia aimed at hampering Russia’s ability to do business in its major currency.
Investors are also calculating the impact of the crisis in Ukraine on the monetary policy of the central bank. Several officials from the European Central Bank (ECB), even those deemed hawkish, said the situation in Ukraine could cause the central bank to delay the start of asset reductions.
In the US, investors and some officials said the conflict in Eastern Europe was likely to slow, but not stop the US central bank’s imminent rate hike, the Federal Reserve (Fed).
In the morning, the rupiah opened higher to a position of Rp. 14,386 per US dollar. Throughout the day the rupiah moved in the range of Rp. 14,353 per US dollar to Rp. 14,389 per US dollar.
Meanwhile, the Jakarta Interbank Spot Dollar Rate (JISDOR) exchange rate on Friday weakened to Rp14,369 per US dollar compared to the previous day’s position of Rp14,371 per US dollar. (ojn/bbs)
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