Rupiah Weakens to 11,708 Against Dollar on Monday

Jakarta (Antara) - The Indonesian rupiah reduced 35 points in the Jakarta interbank spot market to Rp11,708 per dollar on Monday evening from Rp11,673 last Friday. "Rupiah's exchange rate closed lower to a level of Rp11,700 per dollar in the evening trading due to a lack of domestic sentiment, causing domestic money market players to concentrate on external factors," money market observer Rully Nova, who works for Bank Himpunan Saudara, said here on Monday. The domestic sentiment was less significant in the wake of the Constitutional Court (MK)'s verdict on disputed presidential election results, he noted. "After the MK sentiment, money market agents have been waiting for the lineup of the new government's cabinet. If the ministers of the new cabinet are considered competent, then rupiah will strengthen," he stated. Regarding external sentiment, Rully Nova said the money market agents had responded to a statement by chief of the US Federal Reserves Janet Yellen who predicted that the Fed rate will increase faster than expected following the projection of positive manpower data. "The Fed's comment has caused euro to weaken. It also had an impact on the exchange rate of Asian currencies," he added. According to Bank Indonesia's mid-rate, rupiah had weakened to Rp11,714 per dollar on Monday compared to Rp11,645 previously. (*) Reported by Zubi Mahrofi