"Yields on the US bonds that came under pressure have prompted investors to dump their US dollars and seek higher-yielding assets in developing countries," Johannes Ginting of Monex Ivestindo Futures said here on Friday.
The rupiah traded at Rp9,100 per dollar on Friday evening, up by 60 points from Rp9,160 per dollar on Thursday.
He said the US dollar had earlier strengthened against its major counterparts including the rupiah.
"Today`s movement was largely triggered by yields on the US bonds rather than by the US shares. The declining yield has lowered the US dollar`s attractiveness," he noted.
After all, the continuous improvement in the US economy could have a positive impact on the dollar, he added.
"The US economic data, including initial unemployment rate and producer price claims that were released on Thursday has added to signs of the continued US economic recovery," he said.
That the International Monetary Fund (IMF) had endorsed a 28 million euro (36.7 billion US dollar) aid package for Greece served as a positive sentiment. The move was part of an international aid package to assist heavily-indebted Euro zone countries, he said.
"The IMF said it will soon disburse 1.65 billion euros to help Greece`s financing until 2014," Johannes said.
He added that Bank Indonesia (the central bank)`s intervention in the domestic money market also had helped the local unit strengthen on the weekend.
(S012)
Editor: Ella Syafputri
Copyright © ANTARA 2012
