Rupiah Losing Investors Trust

TEMPO.CO, Jakarta - The rupiah exchange rate remained at around 12,000 per US dollar in yesterday's trade due to lack of positive sentiments. The rupiah opened low at 12,035 per US dollar, and closed yesterday's trade with a 34-point (0.29 percent) loss at 12,214.

Reny Eka Putri, quantitative analyst from Bank Mandiri, said investors' increasingly negative perception makes them reluctant to keep their rupiah assets. Political uncertainties in Indonesia added to the bleak prospects of rupiah-denominated investment.

Reny said investors' deteriorating perceptions are also related to economic fundamentals in the country. August's imports value, which increased by 5.05 percent to US$14.79 billion, signaled that the domestic economy has not improve.

"With the ever-increasing imports, rupiah assets are becoming less and less attractive," she said.

Meanwhile, the US nonfarm payroll in September jumped to 248,000, helping the greenback strengthen against most regional currencies. "The US economic fundamentals triggered the dollar appreciation in global markets," said Reny.

Today the rupiah is predicted to move in a weak range of 12,050-12,250 per US dollar. 

PDAT | MEGEL JEKSON