TEMPO.CO, Jakarta - Rupiah's interbank exchange rate in Jakarta continues its' downwards slide on Tuesday, dropping 39 points to trade at Rp12,147 per United States (US) Dollar at the end of trading on Tuesday - down from its' previous position at Rp12,108 per US Dollar.
An analyst for Monex Investindo Futures, Zulfirman Basir, said that Rupiah continues to depreciate as investors await the result of the Federal Reserve Bank of America later on this week.
"Global investors are acting more cautiously in anticipation of the meeting - many are shielding themselves from potential losses by unloading riskier investments and currencies, including the Rupiah," said Basir.
Basir said that The Fed is expected to end its obligation buyback program, in preparation of its plan to raise its core interest rates in 2015.
Furthermore, market players are also acting cautiously while scrutinising the new Working Cabinet's economic programs. "Investors are gauging whether the new cabinet is capable of realising the structural reforms that Indonesia desperately needs, and confirmation over the government's plan to increase the price of subsidised fuel at the end of the month," said Basir.
Bank Indonesia's middle rate stood at Rp12,158 per US Dollar on Tuesday, October 28, 2014 - down from its previous position at Rp12,042 per US Dollar.