Rupiah Plunges Deeper

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  • Uang Rupiah. REUTERS/Beawiharta

    Uang Rupiah. REUTERS/Beawiharta

    TEMPO.CO, Jakarta - The strengthening of the US dollar and the slowdown in the consumer confidence index kept the rupiah weak. In yesterday's currency market, the rupiah fell eight points (0.06 percent) to close at a low 12,309 per US dollar.

    Expectations that the US nonfarm payroll will increase to more than 230,000 people helped the greenback regain its hold in currency markets, as investors gained confidence over the American economy.

    "Improvement in the services sector is expected to encourage the Fed to raise deposit rates sooner than expected," said Monex Investindo Futures analyst Albertus Christian.

    According to Christian, the rupiah also fell on speculations that Bank Indonesia (BI) will cut interest rates by 25 bps to 7.5 percent, since November's inflation is considered well within the central bank's corridors.

    "Speculations of an interest rate cut will reduce the rupiah-based yields," he said.

    For today, Christian predicted the rupiah to move between Rp12,250 and Rp12,350 per US dollar.