JAKARTA (Yosefardi) – The rupiah has reached its Rp13,245 against the US dollar at mid day of Wednesday (March 11) along with the weak yen and euro.
Vice President Jusuf Kalla told reported that the current rupiah fall is following the world trend as yen and euro are also hit by similar problems.
The improving US economy is the main factor which supporting the dollar’s strength over other global currencies.
If the Federal Reserves, US’ central bank, raise its benchmark Fed rate, the rupiah is expected to weaken further against the US dollar, some currencies analysts noted.
Year to date the rupiah has fallen about 5% against the greenback. To protecting the rupiah from further depreciation, Bank Indonesia (central bank) and the government will give fiscal incentives to exporters, implement import duties to prevent the massive imports, and boost the utilization of biodiesel for reducing the fuel import.