The dollar gained ground against major global currencies after one of the officials of the US Federal Reserve hinted that the Feds quantitative easing policy will be terminated in October, Investindo Futures money market analyst Zulfirman Basir said.
"This condition has added to the sentiment that is leading to the strengthening of the US dollar in the domestic money market, amid the announcement of national economic data, which is lower than expected," he noted.
He added that the dollar also strengthened as investors were anticipating the possibility of the European Central Bank (ECB) easing its monetary policy.
The rupiahs weakening may increase the outlook of crude palm oil exports as Indonesia is one of the worlds largest palm oil producers, he noted.
Trust Securities chief researcher Reza Priyambada said the increasing dividend payments by domestic issuers had raised local demand for the dollar, adding to negative sentiment toward the rupiah.
"The foreign holding of shares is quite large. They likely converted the dividends into dollars, exerting pressure on the local currency," he remarked.(*)
Editor: Heru Purwanto
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