The rupiah weakened by 18 points, or 0.10%, to Rp18,174 per US dollar\nat the opening of trading on Wednesday, compared with its previous close\nof Rp18,156 per dollar.<\/p>\n
Bank Woori Saudara analyst Rully Nova said the rupiah\u2019s decline was\ninfluenced by a rise in the US dollar index and US government bond\nyields.<\/p>\n
\u201cThe dollar index and US government bond yields have risen as oil\nprices have climbed again, although the Federal Reserve is expected to\nhold interest rates at 4% in its announcement tonight,\u201d he told ANTARA\nin Jakarta on Wednesday.<\/p>\n
Domestic sentiment also contributed to the weakness, amid pressure on\nthe stock market and declining investor interest in Tuesday\u2019s government\nbond auction (27 October).<\/p>\n
He explained that pressure in the bond market was reflected in the\n10-year yield rising to 7.55%, while the stock-market index had fallen\nby more than 40% and capital inflows into the equity market had exceeded\nRp125 trillion.<\/p>\n
In his view, the government should strengthen the institutions of the\nFinancial Services Authority (OJK) and the stock exchange authority to\nsupport market governance, including compliance with free-float\nrequirements.<\/p>\n
Bank Indonesia (BI), he said, should pursue a tight-money policy by\nraising its benchmark interest rate and using other non-interest\ninstruments, such as increasing the statutory reserve requirement (GWM),\nto curb the rupiah\u2019s decline.<\/p>\n
On the basis of these factors, the rupiah is forecast to trade\nbetween Rp18,140 and Rp18,200 per US dollar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-weakens-as-dollar-index-and-us-bond-yields-rise-1793163400", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }