Thursday, 18th September 2014

Rupiah sinks again

Senin, 2 September 2013 10:48 WIB | 748 Views
Rupiah sinks again
Indonesian Rupiah value to US Dollar (ANTARA FOTO/Puspa Perwitasari)
Jakarta (ANTARA News) - The rupiah value fell again in the opening trade on Monday after regaining some strength last weekend following the rise in Bank Indonesia`s benchmark interest rate (BI rate) by 50 points to 7 percent.

The currency traded at 11,260 per US dollar in inter-bank transaction on Monday morning weakening from 10,840 earlier.

"The dollar strengthening after the release of report of a cut in US unemployment rate and an increase in that country`s GDP served a negative sentiment for rupiah," Trust Securities` chief researcher Reza Priyambada said.

With improved data, expectation is growing in the market that the US central bank would cut its monetary stimulus.

However, the market tended to wait and see what would come from the meeting of the Board of Governors of Bank Indonesia (BI) on Sept. 12.

The market players were also awaiting the release expected on the day of the Indonesian inflation for August, Reza said.