The rupiah dropped to 9,367 per US dollar at opening time on Thursday morning, its lowest position since May last year.
The figure was a 3.2 percent drop from closing time on Wednesday, before again rising to 9,209 per dollar at 10.08 a.m. on Thursday.
Commonwealth Bank currency analyst Mika Martumpal said the rupiah depreciation had followed the falling stock and commodity markets.
He said many investors had let go of stocks and bonds and shifted to dollars, further pressuring the rupiah.
“The market [situation] has been triggered by the Greek default risk and the decision of the [US] Federal Reserve, announced last night,” Mika said as quoted by kontan.co.id.
In a highly anticipated move, the Fed said it would buy $400 billion in 6-year to 30-year treasuries by June 2012. Over the same period, it plans to sell $400 billion in treasuries maturing in three years or less.
The move is intended to drive down interest rates on long-term US government debt, and could lower rates on mortgages and other loans.
Rupiah drops to lowest rate this year
The rupiah dropped to 9,367 per US dollar at opening time on Thursday morning, its lowest position since May last year.
The figure was a 3.2 percent drop from closing time on Wednesday, before again rising to 9,209 per dollar at 10.08 a.m. on Thursday.
Commonwealth Bank currency analyst Mika Martumpal said the rupiah depreciation had followed the falling stock and commodity markets.
He said many investors had let go of stocks and bonds and shifted to dollars, further pressuring the rupiah.
“The market [situation] has been triggered by the Greek default risk and the decision of the [US] Federal Reserve, announced last night,” Mika said as quoted by kontan.co.id.
In a highly anticipated move, the Fed said it would buy $400 billion in 6-year to 30-year treasuries by June 2012. Over the same period, it plans to sell $400 billion in treasuries maturing in three years or less.
The move is intended to drive down interest rates on long-term government debt, and could lower rates on mortgages and other loans.
