Rupiah Depreciates To Rp11,715/USD On Monday

Jakarta, Nov 25 (Antara) - Indonesia`s rupiah depreciated to Rp11,715 against the U.S. dollar on Monday, in response to the market`s anxiety over a cutback in financial stimulus. The rupiah`s inter-bank transactions opened at Rp11,715 per U.S. dollar on Monday or 13 points lower than the closing market rate on Nov. 22 at Rp11,702 per U.S. dollar. "The rupiah had depreciated following the market response to the Federal Open Market Committee`s (FOMC) results that indicated a stimulus cutback," Trust Securities` Head of Research Reza Priyambada pointed out. According to Priyambada, the Japanese yen and Chinese yuan had also depreciated following the Japanese Central Bank`s report that it would limit an increase in long-term yields, which had raised internal market sentiments in China, also reflected in its sluggish manufacturing growth. An analyst from Monex Investindo Futures, Zulfirman Basir, added that the domestic financial market had been overshadowed by anxiety about the trade balance and current account deficits, the high inflation and the deceleration in Indonesian economic growth. "The investors are anxious about these factors, as much as they are worried about a financial stimulus cutback by the United States` Federal Bank (Fed) as the Fed`s President of Atlanta Dennis Lockhart and Fed`s President of Kansas Ester George had indicated that such a cutback might take place in December," Basir stated.