Jakarta. Rupiah weakened again on Wednesday after Bank Indonesia kept its benchmark interest rate unchanged, while external pressures from the United States continued to bolster the dollar.

The rupiah closed down 16 points against the US dollar in afternoon trade on Dec. 17, after the central bank decided to hold the BI Rate at 4.75%. Bank Indonesia also left the deposit facility rate at 3.75% and the lending facility rate at 5.5%.

“The rupiah had earlier strengthened by about 10 points to Rp 16,694, compared with the previous close at Rp 16,691,” Ibrahim Assuaibi, director of Traze Andalan Futures, said in a statement on Wednesday.

From the external side, the rupiah came under pressure following the release of US economic data, particularly nonfarm payrolls and the unemployment rate, which remained elevated.

“The US unemployment rate has climbed to its highest level in four years, raising concerns about the economy,” Ibrahim said. “Signs of a cooling US economy were reinforced by weaker-than-expected December purchasing managers’ index data, while delayed October retail sales figures also pointed to slower growth compared with the previous month.”

Despite the softer data, the developments continued to support the US dollar against the rupiah, as markets remained cautious over liquidity conditions in the US financial system. This followed the Federal Reserve’s continued purchases of government bonds, widely referred to as quantitative easing, in December.

Market attention is now shifting to US consumer price index data due on Thursday, Dec. 18, which investors will closely monitor for further clues on inflation trends and the outlook for the world’s largest economy, Ibrahim added.

The rupiah was also weighed down by rising geopolitical tensions involving the United States, after President Donald Trump ordered a blockade on sanctioned oil tankers entering and leaving Venezuela and unilaterally designated the country as a foreign terrorist organization.

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