Rupiah Closes Lower in Value Againts the US Dollar

Jakarta (Antara) - The rupiah closed lower in value against the US dollar on Monday ahead of the announcement of the Fed tapering its massive financial stimulus scheduled on Thursday. Inter-bank transaction rupiah traded at the level of 12,217 per US dollar weakening from the previous level of 12,181 per dollar. The currencies of developing nations fell in value ahead of the announcement scheduled on Thursday of the Fed's decision to trim its financial stimulus tapering, chief researcher of Monex Investindo Futures, Ariston Tjendra, said. Ariston said the majority of the members of the FOMC are in favor of tapering to follow the progress made in the US economic recovery. Last December The Fed decided to trim its asset buying program by US$10 billion to US$70 billion per month "If the trimming continues risky currencies would likely fall under pressure again and the US dollar would be the safe haven," he said. The slowdown in the Chinese manufacturing activities added to the negative sentiment . China is one of the country's largest trading partners. PT Bank Saudara's analyst Rully Nova said rupiah is still moving in the negative area with fluctuation caused more by negative sentiment rather than fundamental condition. "The domestic economic fundamental is still positive. The country's foreign exchange is expected to be on the increase," he said. (*)