Jakarta - The rupiah exchange rate against the US dollar on Monday (20/9) has the potential to weaken as market players anticipate the results of the US Central Bank's monetary policy meeting this week in the early hours of Thursday.

"The market is looking for clues to the possibility of tapering at the end of this year," said money market observer Ariston Tjendra in Jakarta.

With no certainty regarding this tapering policy, he explained that the market is always on guard ahead of the US Central Bank event or important US economic data.

US economic data has improved, supporting the US Central Bank to start its monetary tightening policy.

Several high-ranking US Central Bank officials also voiced the possibility of tapering at the end of the year.

On the other hand, the pandemic condition has improved in the country, which has revived the economy, could restrain the weakening of the rupiah against the US dollar.

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