Rupiah weakens as US initial jobless claims data improves

Jakarta (ANTARA) — The rupiah weakened against the US dollar at the close of trading on Friday, falling 20 points, or 0.11 per cent, to Rp18,080 per dollar from its previous close of Rp18,060.

Currency analyst and PT Traze Andalan Futures director Ibrahim Assuabi said the rupiah’s weakness was influenced by US initial jobless claims data that was better than expected.

“Initial US jobless claims for the week ending 17 October came in better than expected, at 194,000,” he said in a written statement in Jakarta on Friday.

The figure was below both the estimate and the previous reading of 200,000, and marked the lowest level in nearly 57 years.

Another factor was concern about further disruption to energy supplies following attacks by Yemen’s Ansarullah (Houthi) group on Saudi Arabia.

On Thursday (22 October), Saudi Aramco ordered the evacuation of its headquarters in Dhahran, near Bahrain in the Gulf region, as fighting intensified between the world’s largest crude oil exporter and the Yemen-based Ansarullah group.

“Clashes between the Houthi group and the Saudi-led coalition supporting Yemen’s internationally recognised government have continued since the Houthis advanced towards Bab el-Mandeb, a strategic shipping route at the mouth of the Red Sea,” Ibrahim said.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened today, to Rp18,069 per US dollar from Rp18,047 previously.