Greenback Gains as Market Frets about Ukraine
26 August 2014 10:10 WIB
TEMPO.CO, Jakarta – The US dollar regains its hold in the currency market as situations in Ukraine heat up again. Rangga Cipta, an analyst with Samuel Sekuritas Indonesia, said that despite the declines in most of America's economic data that were released earlier in the week, the greenback continues to strengthen.
"Geopolitical situations in Ukraine triggered high demand for safe-haven assets," Rangga said through in daily research.
Investors' worry was reignited after Russia insisted to send direct humanitarian assistance to Ukrainian rebels, a decision that is expected to increase the strength of pro-Russian militia covertly.
As a result, the yield for US 10-year bonds was corrected by 2.38 percent. On the other hand, the declining data in Germany's Ifo Business Climate also boosted the dollar index.
In yesterday's trade, the greenback gain pressured Asian currencies including the rupiah.
"Today, the rupiah is predicted to move between 11,700 and 11,750 per US dollar with a tendency to weaken," said Rangga.
As of 09.00 am today, August 26, the rupiah opened 11 points (0.09 percent) lower at 11,725 per US dollar. The Singapore dollar weakened 0.04 percent to 1.25 per US dollar, while the rupee lost 0.15 percent to 60.56 per US dollar.
PDAT | M. AZHAR
