"The dollar strengthened (against the rupiah) because investors and business players need the US currency while closing their books at the end of the first half of the financial year," said Ariston Tjendra, research chief of Monex Investindo Futures.
However, he added that market concerns over a US government shutdown on October 1 would cause the dollar to weaken. As a result, investors will hesitate to collect the dollar aggressively until Congress approves a proposal to raise the debt ceiling.
"Therefore, the chances of the dollar closing higher will be slim," he stated.
Ruly Nova, money market observer of Bank Himpunan Saudara, remarked that the money market was still concerned about the United States` economic condition.
"The negative growth of the US economy will no doubt have an impact on the global economy, thereby making developing countries` currencies less attractive; on the other hand, demand for the Japanese yen as a `safe haven` will be on the rise," he explained. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
