Rupiah loses more value against dollar

Jakarta (ANTARA News) - The Indonesian currency rupiah lost more value in inter-bank transaction on Monday morning trading at the level of 15,183 per U.S. dollar from 15,150 earlier.

Economist from the Samuel Aset Manajemen, Lana Soelistianingsih, said an increase in the yield of the U.S. bonds drew more funds to the U.S. market giving greater strength to the U.S. dollar.

"The yield on the U.S. governments 10-year bonds rose to 3.22 percent or the highest since May 2011," Lana said.

She said the rise in the yield of the U.S. government bond followed the reaction of the market players to decline in unemployment rate in the worlds largest economy to 3.7 percent in September.

However, Bank Indonesia will likely move to prevent the rupiah from falling deeper in value, he said, predicting rupiah will hover at the level of 15,180-15,190 per dollar.

Meanwhile, senior analyst of CSA Research Institute Reza Priyambada said the rising trend of the oil price in the world market and shrinking foreign exchange reserve contributed to rupiah weakening.

"Indonesia needs much dollar to finance oil imports resulting in further decrease in the countrys foreign exchange reserve," Reza said.

Source: ANTARA News

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