The Indonesian currency traded at the level of 11,780 against the US dollar losing 19 points from earlier level of 11,761 per dollar.
A researcher from the Association of Indonesian Securities Analysts (AAEI) Reza Priyambada said the falling value of Japanese yen gave room for the US dollar to gain strength against other Asian currencies including rupiah.
"The market players will utilize the momentum to buy the US dollar resulting in the rupiah weakening," Reza said.
In addition, the relaxation of the monetary stimulus or quantitative easing which is coming to an end and expectation that the FE would soon raise its interest rate in 2015, would strengthen the US dollar against the majority of Asian currencies.
Expectation of an increase in the FED interest rate is strong and the condition of the US economy is improving, he added.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
