Rupiah Slips as Greenback Soars on Home Sales

TEMPO.CO, Jakarta - The rupiah fell 29.5 points (0.25 percent) to close yesterday's trade at 11,983 per US dollar. The rupiah stayed weak throughout the entire trading session along with other global currencies that depreciated against the greenback. The peso noted the deepest correction, slipping 0.72 percent to close at 44.78 per US dollar.

Reny Eka Putri, currency analyst from Bank Mandiri, said the greenback rose with the US new home sales report, prompting investors to put their money on the safe haven.  

Domestic politics, Reny said, also contributed to the rupiah correction. The issue on local elections still makes investors worry about the political stability of the future government. "The polemic of the local election bill builds a new uncertainty on the prospects of political stability," she said.

For the weekend, the absence of positive sentiments will make it difficult for the rupiah to climb. Reny predicted the rupiah to move in the range of 11,900 to 12,000 per US dollar. The weekly jobless claim, which is predicted to increase to 294,000 people, will hold the rupiah rate back even more.

PDAT | MEGEL JEKSON