medcom.id, Jakarta: Bank Indonesia (BI) observed the recent decline in the rupiah against the united States (US) dollar is caused by external factors including the US Federal Reserve's plan to raise its benchmark rate in June.
"It affects the global market," said BI Governor Agus Martowardojo at his office, Jakarta, Friday (5/20/2016).
He added that Brexit also poses a risk to the rupiah. If the United Kingdom (UK) leaves the European Union (EU), Agus believes the British poundsterling will fluctuate.
"It can create instability in global financial market. We need to be aware about this," he continued.
The continuing decline of global economy also gives negative sentiment to the rupiah. Agus mentioned both developed and developing countries still have low economic growth.
"It affects global trade. For Indonesia, the commodity prices actually have improved this year.But we still need to be cautious with the low growth," he concluded.
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