Dollar Slumps on Growth Correction; Rupiah Climbs
14 October 2014 14:50 WIB
TEMPO.CO, Jakarta – The greenback was corrected against most regional currencies throughout yesterday's trade, allowing the rupiah to gain 22 points (0.18 percent) to close at 12,201 per US dollar.
The Japanese yen gained 0.25 percent to close at 107.39 per US dollar. Investors' switching their portfolios from US dollar to yen allowed the Japanese currency to reach its strongest position in four weeks.
Economist Rangga Cipta from Samuel Sekuritas Indonesia said that the global economic growth forecast, which was corrected by a number of global economic institutions, created a negative sentiment for greenback.
"Investors are worried the US' economic performance would be disrupted by the global economic outlook, which will further delay the Fed's interest rate hike," he said yesterday.
The World Bank Group and the International Monetary Fund (IMF) annual meeting, which ended Saturday last week, resulted in another correction for this year's global economic growth. This time, the outlook is cut from 3.4 percent to 3.3 percent.
China's economic slowdown and geopolitical risks from the rise of military conflicts cause the IMF to doubt that this the global economy could grow better than last year.
Today, the currency market is likely to be affected by the lingering sentiment of Fed's rate hike delay, which might create a chance for the rupiah to strengthen further to Rp12,150 to Rp12,250 per US dollar.
PDAT | MEGEL JEKSON
