Rupiah Weakening Against the US Dollar

Jakarta (Antara) - Indonesia's rupiah weakened 70 points against the US dollar in the closing trade on Wednesday with growing expectation of the Fed cutting its financial stimulus. In inter-bank transactions rupiah traded at the level of 11,990 from 11,920 per dollar in the previous day's close. "The US dollar gained against rupiah with the prospect of the Fed cutting of its bond buying program to come sooner," chief researcher of Monex Investindo Futures, Ariston Tjendra , said here on Wednesday. Ariston said the market players tended to buy dollar with the US budget agreement coming closer. Uncertainty over budget agreement was one of the factors delaying the Fed tapering off in September, he said. "Worries about the tapering off , prompted investors to turn to assets of safe havens such as dollar," he added. Financial market analyst of Bank Mandiri Rully Arya Wisnubroto said the rupiah is relatively stable still. Rully said it is possibler that Bank Indonesia still continues with market intervention. "Rupiah is still stable though tending to weaken," he said . (*)