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Jul 18, 2011

Rupiah Weakens Monday afternoon 24 pts

The lack of positive news in the global marketplace encourages market participants put the value of their assets in safe currencies such as the U.S. dollar so weak rupiah resumed on Monday afternoon by 24 points.

The rupiah exchange rate against the U.S. dollar Monday afternoon in the Jakarta interbank spot market fell 24 points to Rp8.548 per U.S. dollar compared to the previous position worth Rp8.524.

PT Indosurya Asset Management analyst Reza Priambada here on Monday said the uncertainty of global economic growth encourages traders prefer money into the U.S. dollar is considered strong.

"The lack of positive issues as well as the global economic turmoil is still uncertain to make an active market players get in on the U.S. dollar strengthened so that the currency was included in other currencies like the euro," he said.

He added, though minimal positive news, the rupiah still has room supported by strengthening domestic economic fundamentals are positive expected.

"Opportunities strengthening of the rupiah is still there in the second half of this year compared to the first half of 2011 in line with the continued entry of foreign funds encouraged by the positive economy in the country," he said.

Meanwhile, research analyst at Monex Investindo Futures, Ariston Tjendra said that, despite the U.S. dollar strengthened, however, the U.S. dollar is also shadowed by the pressure due to the threat of debt downgrades by debt rating agencies.

He added that the threat was a result of the U.S. government and Congress still have not agreed on the increase the upper limit of U.S. debt that will reach the limit on 2 August 2011.

"As a result, market participants will seek safe haven` other `outside of the U.S. dollar gold ie, Japanese yen and Swiss franc in which we see all three of these instruments strengthened last few days," he said.

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