The currency`s exchange rate in Jakarta inter-bank`s transaction weakened by 10 points to Rp9.575 per US dollar from the previous mark of Rp9.565 per US dollar.
"The global economic slowdown is still driving market players to enter more secure instruments such as the US dollars currency," said the research head of Monex Investindo Futures, Ariston Tjendra on Tuesday.
Tjendra added that the Asian and European demand slowdown has indicated a contraction of manufacturing activity and rising unemployment numbers. The global economic outlook is uncertain.
He further said that the US dollar has rebounded against major world currencies, showcasing the risk of aversion once again overshadowing the European markets.
"Spain is still the focus of attention of the global financial markets. Although the market accepted the budget plan to reduce the budget deficit, it is still worried about Spain`s ability to finance its economy without `bailout` assistance," he said.
According to him, Spain`s financial uncertainty is creating debt downgrade opportunity by ratings agency Moody`s.
According to some data released earlier this week, the French manufacturing sector deteriorated in September, but was offset by Germany`s manufacture Purchasing Managers Index increase.
"Germany's rebound data has been encouraging investors who previously speculated that the manufacturing sector in Europe`s biggest economy had fallen," he said.(*)
Editor: Heru Purwanto
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