Greenback Edges Down on Yellen Statement
25 February 2015 13:44 WIB
TEMPO.CO, Jakarta – Janet Yellen's statement that the Federal Reserves is not rushing to raise rates caused the US dollar index to weaken. The dollar's slip-down helped emerging currencies to gain, the rupiah included.
This morning, the rupiah gained 30 points (0.23 percent) to Rp12,892 per US dollar.
Rangga Cipta, an economist with Samuel Sekuritas Indonesia, said that in her speech before the US Congress yesterday Yellen remarked her satisfaction with America's economic pace, except for inflation.
"The desire to raise rates remains, but at least for the next two FOMC Meetings, the Fed Rate will not change." He said.
The market responded positively to Yellen's statement, shown by gains in Wall Street indexes and a decline in the US bond yield.
Other Asian currencies that thrive on Yellen's remark include the Japanese yen that gained 0.25 percent. Meanwhile, the Korean won inched by 0.52 percent and the Indian rupee gained 0.18 percent.
M. AZHAR
