Rupiah Falls as Russia-Ukraine Negotiation Fails

english.jpnn.com, JAKARTA - The rupiah exchange rate opened lower today as a result of the failure of the Russia-Ukraine negotiation.

Rupiah weakened to 32 points or 0.22 percent to the position of Rp 14,308 per US dollar.

At the close of the previous trade, rupiah was still perched at Rp 14,276 per US dollar.

"The rupiah exchange rate has the potential to further weaken today as the negotiation between Ukraine and Russia failed yesterday in Turkey," said money market observer Ariston Tjendra, Friday (11/3).

"This war will continue and push up commodity prices and increase inflation, which can suppress global economic growth," added Ariston.

Today's rupiah was also influenced by the release of US consumer inflation data in February last night. Ariston assessed that expectations of an aggressive US policy rate hike have increased.

US consumer inflation in February 2022 rose 7.9 percent, the highest in 40 years.

"This triggered the strengthening of the US dollar against other exchange rates," said Ariston.