"Rupiah lost more of its value to follow euro weakening on the debt crisis in the euro zone," an analyst said.Jakarta (ANTARA News) - The Indonesian currency rupiah lost more of its value against the US dollar on worries about protracted debt crisis in Europe.
Rupiah closed at 9,169 to the US dollar in interbank trade on Wednesday afternoon weakening from 9,615 earlier.
"Rupiah lost more of its value to follow euro weakening on the debt crisis in the euro zone," Monex Investindo Futures` chief researcher Ariston Tjendra said here on Wednesday.
Ariston said risky currencies weakened by a comment made by European Central Bank`s President Mario Draghi, who said that global currencies were facing risk of financial instability.
He said the Spanish bond yield also surged to follow the trend in bond market which continues to be surrounded by uncertainties over whether Spain would ask for international bailout fund or not.
Meanwhile, gloomy prediction by the International Monetary Fund rendered a blow to investors that the world`s economic slowdown would be worse.
Samuel Sekuritas` analyst Lana Soelistianingsih said negative sentiment from the European market has its impact on Asian market that rupiah is expected to lose more value.
Bank Indonesia`s middle exchange rate on Wednesday recorded rupiah gained slightly to 9,598 to the dollar from 9,600 earlier.(*)
Editor: Heru Purwanto
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