||Asean Affairs 17 July 2013
Rupiah sinks lower against the US dollar
The Indonesian currency rupiah lost more value against the US dollar on fears of turbulence in the financial market as a result of the Chinese economic slowdown.
Rupiah lost 40 points to close at 10,030 per dollar in inter-bank transaction on Tuesday from Monday`s close at 9,990.
"Chinese economic slowdown heaped pressure on rupiah," Monex Investindo Futures` analyst Zulfirman Basir said here on Tuesday.
Zulfirman said it was difficult to expect the rupiah to regain strength with lack of positive internal and external sentiments.
The rise in Bank Indonesia benchmark interest rate was expected to serve as a positive sentiment but apparently it was not strong enough to prop up the currency, he said.
"Worries over Indonesia`s economic slowdown and deficit in the country`s trade balance add to the pressure on rupiah," he said.
Trust Securities chief researcher Reza Priyambada said the rupiah fall followed the regional trend.