"The US dollar strengthened against major global currencies, including the rupiah, due to rising yields on the 10-year US bonds. The rising yields reflected investors optimism about the US economic outlook," Ariston Tjendra, chief researcher with Monex Investindo Futures, said on Tuesday.
The expectation of the US economic recovery was relevant to non-farm payroll data, which reported the amount of wages paid to US workers, he added.
In the domestic economy, the conducive political condition in the lead-up to the presidential election on July 9 was not significant enough to raise the local currency, as market players were still anticipating the direction of the leadership of the two pairs of presidential and vice presidential candidates, he said.
"Investors have appeared to stay alert until the July 9 presidential poll. Based on the results of surveys, the two pairs of presidential and vice presidential candidates still have an equal chance of winning the poll," he noted.
According to Bank Indonesias mid exchange rate on Tuesday, the rupiah weakened against the dollar to Rp11,806 compared with Rp11,790 the previous day.(*)
Editor: Heru Purwanto
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