The reasons behind Rupiah's value keep weakening

The rise and fall of the Dollar against the Rupiah caused by several factors

1. The value of domestic exports fell

One of the causes of weakening currency in the states is the value of the domestic exports are very weak so that the state spends a lot of money to importing goods from another country. Deficit economies are usually the value of its currency is weak against the foreign currencies. As Indonesia ever experienced the monetary crisis in the 1998.

2. The political instability

The condition of the political dynamics of a country can affect the exchange rate. For example when Indonesia in the election situation, by that time there was happen uncertainty in the political situation so the investors or the manufacturers will be doubtful to importing goods to Indonesia.

Regards
Rama Hilmy