Rupiah Falls In Value Against U.S. Dollar

Jakarta, May 29 (Antara) - The Indonesian currency fell again to a negative area in trading on Wednesday morning to follow the yen trend. Rupiah traded at the level of 9,889 per US dollar losing 22 points from previous level of 9,867. "Rupiah was still under pressure to follow the decline in the yen value," Trust Securities` chief researcher Reza Priyambada said here. Reza said the delay in the schedule to announce the subsidized oil price hike contributed to the rupiah fall. "The delay would increase the burden of the state budget and the pressure could bear on the country`s trade balance," he said. He said the market player see the uncertainty that they chose to seek a safety haven especially as the US dollar is gaining with the expectation of quantitative easing to follow the improvement of the US economic data. Zulfirman Basir, senior Researcher and Analyst of PT Monex Investindo Futures, said the dollar gain made rupiah denominated bonds less interesting for foreign investors. "The deficit in the country`s balance of payments also contributed to the rupiah fall," he said. In addition, foreign investors reduce their ownership of shares on the domestic market to prevent losses as a result of the rupiah fall, he said. "Bank Indonesia, however, will likely intervene in the market if rupiah continues to shrink," he added.