There probably is no better time to trade in your US dollars for the rupiah than now, at least for the foreseeable future.
The rupiah has fallen to its lowest exchange rate against the US dollar in 10 months, currently trading at IDR13,580 per US dollar according to Bloomberg. The last time the rupiah performed as poorly was December 2, 2016.
According to Kontan, the rupiah’s weakening is mostly caused by the strengthening of the US dollar. Most currencies in Asia also took a hit, with values of the Philippine Peso and South Korean Won taking the deepest dives.
Indonesia’s central bank, Bank Indonesia, said the rupiah, at worst, would fall to around IDR13,600 per US dollar, and the rate will continue to fluctuate itself into next year.
“(By the end of) 2017 it will be IDR13,420 (per US dollar), and in 2018 it will be IDR13,550,” said Bank Indonesia Deputy Governor Mirza Adityaswara, as quoted by Detik yesterday.
Reny Eka Putri, a financial analyst at Bank Mandiri, one of Indonesia’s largest banks, agrees with Bank Indonesia’s prediction and is advising people to cash in on their dollar now for maximum profit.
“My view is that the rupiah has the potential to get stronger (soon), surely it’s time to make profit (by trading in US dollars),” she said, as quoted by Detik yesterday.
