Oil Prices Fluctuate, Rupiah Weakens 0.39%

The Indonesian Rupiah closed 0.39% weaker against the US dollar at Rp 14,095/US$ on Tuesday (September 17th). The weakening of the Rupiah occurred for two consecutive days due to negative sentiment from the rising global oil prices, triggered by a Houthi rebel drone attack on Saudi Aramco facilities.

The attack is estimated to reduce global crude oil supply by up to 5.7 million barrels per day. Ibrahim, an analyst at PT Garuda Berjangka, stated that Indonesia, as a net importer of oil, makes changes in global oil prices highly influential on the US dollar demand for oil imports.

Brexit is also a factor influencing the Rupiah's movement today. Prime Minister Boris Johnson's visit to Luxembourg illustrates the lack of progress in a transition agreement with the European Union before Brexit takes effect on October 31st, 2019.