The exchange rate of the rupiah to the US dollar in inter-bank trade in Jakarta on Tuesday morning weakened by 171 points to 12,884.

'€œThe rupiah depreciated together with other Asian currencies. The combination of sales by foreign investors at the stock market, expectation for a Fed rate hike and high demand for the dollar were the main causes for the rupiah depreciation,'€ Samuel Sekuritas Rangga economist Cipta said as quoted by Antara news agency.

Rangga predicted that depreciation of the rupiah would continue until the first quarter of next year, but would improve through the end of 2015, despite the possibility of heavy correction after the Fed raises its interest rate in 2015.

'€œOn Tuesday the rupiah will be on the weakening trend even though [downward] pressure will be lighter then the previous day,'€ he said.

Chief researcher of Monex Investindo Futures Ariston Tjendra said the rupiah'€™s rate was under deep pressure amid the speculation of sales on assets in developing-country markets.

'€œThe impact of the fund-outflow could be felt by Asian currencies, which also affects rupiah depreciation. The fund outflow from the stock and obligation markets could be seen in Indonesia at the end of the year,'€ he said. (hhr)

Popular

MR. D.I.Y Indonesia marks 1,200th store opening as the fastest expanding retailer

Indonesia climbs to second in SEA Games medal standings

Lots of clicks, few arrivals as ‘New Bali’ dream hits snag