"Increase in the bond yield would cause concerns to investors in the country.Jakarta (ANTARA News) - The Indonesian currency rupiah lost more value against the US dollar in the first minutes of trade on Wednesday morning.
The currency opened at the level of 11,955 per US dollar weakening from earlier level of 11,892 per dollar.
Investors still were worried by possible surge in the oil prices as a result of the Iraqi conflict, chief researcher of Trust Securities Reza Priyambada said.
Increase in oil prices would put greater pressure of the state budget and on rupiah , Reza said.
In addition, oil price hike may result in the widening of the deficit in the country trade balance, he said.
The increase in the yield on the government bonds especially state sharia bonds would add to the negative sentiment weakening rupiah.
"Increase in the bond yield would cause concerns to investors in the country," Reza said.
Meanwhile, rising US inflation would strengthen the dollar over the majority of global currencies prompting the Fed to raise its interest rate earlier than expected, he added.
In addition, the Fed would likely cut its monthly bond purchase program, he said.
(AS/O001)
Editor: Ella Syafputri
Copyright © ANTARA 2014
