Rupiah Falls After First Omicron Case Detected in Indonesia

jpnn.com, JAKARTA - Rupiah exchange rate was hit by two major factors from within and outside the country.

The rupiah exchange rate on Thursday closed down 28 points or 0.19 percent to Rp 14,362 per US dollar.

Money market observer Ariston Tjendra said that the outside factor was the Fed to accelerate tapering.

"The accelerated tapering will certainly have a strengthening effect on the US dollar, especially since some analysts are expecting three more hikes in the US benchmark interest rate next year," Ariston said in Jakarta, Thursday.

The Fed has said it will end its pandemic-era bond buying in March 2022.

Fed officials also expect US inflation to hit 2.6 percent next year compared with the 2.2 percent projected in September.

In addition, the unemployment rate will drop to 3.5 percent.

"Within the country, the announcement of the first Omicron case perhaps becomes a new concern for the financial market, which is depressing the rupiah," said Ariston.