Rupiah Remains Weak despite Easing Fed Sentiment
19 September 2014 15:52 WIB
TEMPO.CO, Jakarta – Although sentiments from the Federal Reserve's plan to raise the US interest rates have begun to subside, the rupiah remains corrected. The US Treasury (UST) increased yield caused most investors to continue buying greenback-denominated assets.
As of 11:15 am in today's trade the rupiah edged down by 6.5 points (0.06 percent) to 11,989 per US dollar, after plunging 28.5 points (0.24 percent) to 12,011 per dollar.
Rangga Cipta from Samuel Sekuritas Indonesia said that although the US dollar's uptrend had eased up, regional exchanges still fret over a raised UST yield. Yield for the ten-year UST has gone up to 2.69 percent, causing investors to take up any chance of making profits.
"Even though the dollar index fell, the average yield of US Treasury is still in an upward trend," he said on Friday, September 19.
Rangga appreciated Bank Indonesia's (BI) decision to impose hedging rules for the US dollar, saying it could reduce pressure on the rupiah.
Most of Asia-Pacific currencies are showing a negative movement. The Korean won fell 0.33 percent to 1046.55, while the Japanese yen lost 0.52 percent at 109.25.
MEGEL | PDAT