US Dollar Gains While Rupiah Slides Again
30 September 2014 11:32 WIB
TEMPO.CO, Jakarta - The United States (US) Dollar has continued its gains against the Rupiah on Tuesday morning, as negative sentiments in Hong Kong following the pro-democracy riot in the city-state.
On Tuesday morning, Rupiah's interbank exchange rate in Jakarta slid by 15 points to Rp12,170 per US Dollar - down from its previous position of Rp12,155 per US Dollar at the end of trading on Monday.
"Rupiah's losses is exacerbated to a certain extent by the negative sentiment in Hong Kong following the protests, which also cause the Chinese Yuan to lose some of its value against the US Dollar," said Reza Priyambada, an analyst for Woori Korindo Securities in Jakarta on Tuesday.
A weaker Yuan enables to US Dollar to continue its march into the green zone - which is also fuelled by the release of economic data which suggests that the US economy grew at a robust pace in the second quarter of 2014.
"These conditions are pushing investors to seek out US Dollars to invest in," said Reza, who also said that the lack of a positive boost in the domestic market is causing the Rupiah's value to continue to fall.
Zulfirman Basir, an analyst from Monex Investindo Futures, said that a robust Gross Domestic Product (GDP) growth in the US may push the Federal Reserve Bank of America to increase its interests rate sooner than experts had expected, which is hoped to speed up the US' economic recovery.
On the other had, investors are worried over the recent release of China's economic data which suggest that China's economy is slowing down - as China is Indonesia's main trading partner.
ANTARA | ZUBI MAHROFI | ELLA SYAFPUTRI