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Indonesian rupiah weakens amid stock market decline, global uncertainty

0 Comment(s)Print E-mail Xinhua, March 25, 2025
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JAKARTA, March 25 (Xinhua) -- The Indonesian rupiah opened weaker against the U.S. dollar amid stock market decline and global uncertainty on Tuesday.

The dollar bought around 16,610 Indonesian rupiahs on Tuesday morning, as the local currency continued to face pressure from both domestic and international factors.

Indonesian financial market analyst Ariston Tjendra told local media that investor confidence in the weakening stock exchange put additional pressure on the rupiah at the opening of trading.

"Investor confidence in the domestic stock exchange also puts pressure on the rupiah. Market players' pessimism about domestic economic growth is reflected in the movement of the Indonesia Stock Exchange (IDX) stock index," he said, as reported by state news agency Antara.

Since the beginning of the year, the IDX has weakened by 931.21 points, or 13.13 percent year to date, from 7,164 on Jan. 2 to 6,161.22 on March 24.

On Tuesday morning, the U.S. Dollar Index also rose to around 104.30, compared to Monday's level of 104.10.

Tjendra added that the market is still anticipating the negative impact of the U.S. tariff increase policy, which is expected to take effect on April 2.

He also noted that new conflicts in the Middle East are adding to market concerns, contributing to the risk-off sentiment in global financial markets. Enditem

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