Jakarta, May 17 (Antara) - The Indonesian rupiah fell 56 points to close at Rp14,086 per dollar in the Jakarta inter-bank spot market on Wednesday evening compared to the previous close of Rp14,030 per dollar.
The US dollar appreciated against a number of global currencies, fueled by a high yield on 10-year US bonds to the level of above 3 percent, Monex Investindo Futures' chief researcher, Ariston Tjendra, stated here on Wednesday.
"The high yield has increased the interest rate spread between the US and other developed nations, thus making the US dollar more attractive," he noted.
He added that the high yield on the US bonds has led to capital flight from developing market. One of the factors supporting the yield on the US bonds is the sign of easing of US-China trade tension.
The US dollar's chance to continue its rally against other currencies will be quite open in the following trade if data of construction permits in the US would be better than the market estimate.
FXTM Market Strategist, Hussein Sayed, remarked that investors are paying attention to the meeting of Bank Indonesia (BI) Board of Governors¿ Meeting scheduled to be held on May 16 and 17, 2018.
"BI is likely to raise its interest rate to stabilize the rupiah and reduce investors' concern over capital outflow," he explained.
According to BI mid-rate on Wednesday, the rupiah weakened to Rp14,094 per dollar compared to the previous close of Rp14,020 per dollar.
EDITED BY: Yosep.
COPYRIGHT © ANTARA News Megapolitan 2018
The US dollar appreciated against a number of global currencies, fueled by a high yield on 10-year US bonds to the level of above 3 percent, Monex Investindo Futures' chief researcher, Ariston Tjendra, stated here on Wednesday.
"The high yield has increased the interest rate spread between the US and other developed nations, thus making the US dollar more attractive," he noted.
He added that the high yield on the US bonds has led to capital flight from developing market. One of the factors supporting the yield on the US bonds is the sign of easing of US-China trade tension.
The US dollar's chance to continue its rally against other currencies will be quite open in the following trade if data of construction permits in the US would be better than the market estimate.
FXTM Market Strategist, Hussein Sayed, remarked that investors are paying attention to the meeting of Bank Indonesia (BI) Board of Governors¿ Meeting scheduled to be held on May 16 and 17, 2018.
"BI is likely to raise its interest rate to stabilize the rupiah and reduce investors' concern over capital outflow," he explained.
According to BI mid-rate on Wednesday, the rupiah weakened to Rp14,094 per dollar compared to the previous close of Rp14,020 per dollar.
EDITED BY: Yosep.
Editor : M. Tohamaksun
COPYRIGHT © ANTARA News Megapolitan 2018