Rupiah Shrinks in Value Against US Dollar

Jakarta (Antara) - The rupiah value fell against the US dollar to a new low in the first minutes of trade on Wednesday morning. In inter-bank transactions the Indonesian currency traded at the level of 12,09 per US dollar weakening from the level of 11,989 earlier. The currency weakened despite dollar fall in value against the majority of global currencies on expectation that the US central bank would maintain its benchmark interest rate at a low level for the next several months, chief researcher of Trust Securities Reza Priyambada said. Reza said the country's trade deficit and rising oil prices as a result of the Iraqi crisis still cause negative sentiments on the domestic currency. Financial market analyst of Bank Mandiri Renny Eka Putri said there was no positive sentiment to shore up rupiah both domestically and externally. Indonesian economic data are expected to be released next week and crisis in Iraq and Ukraine prompted investors to buy safe have currencies, Renny said. In addition, the country's inflation is expected to remain high as grand harvest is predicted to fall below expectation and meanwhile the prices are expected to rise with the Muslim predominantly country is entering a fasting month and Idul Fitri. (*)