Money market observer Bank Woori Saudara Indonesia Tbk Rully Nova in Jakarta on Monday said that rupiah depreciation was relatively limited to the US dollar with intervention by Bank Indonesia.
"External sentiments, especially from the United States, are still negative for the currencies of developing countries, but Bank Indonesia intervenes so that the rupiah is not pressed deeper," he said.
He said that the positive US economic data triggered speculation that the space for the FED to raise again its benchmark interest rates was quite open, conditions that made investment instruments in developing countries attractive.
"Funds in emerging markets tend to go to the United States, the situation is triggering the rupiah to tend to weaken," he said.
Head of Research at Monex Investindo Futures Ariston Tjendra said market participants who are considering the low US unemployment rate and a solid workforce are positive catalysts for US bond yields.
"A solid US economy supports expectations of a further gradual rate hike by the FED," he said.
Meanwhile, Bank Indonesia`s middle rate on Monday (8/10), recorded the weakening of the rupiah to Rp15,193 compared to the previous (5/10) in the position of Rp15,182 per US dollar.
Reporting by Zubi Mahrofi
Editing by Eliswan, Rahmad Nasution
Reporter: antara
Editor: Heru Purwanto
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