This Is Why The Rupiah Weakens

Indobusiness - The rupiah continued to weaken in a week. There are various reasons that lead to the weakening of the rupiah. What is it? Trust Securities analyst, Reza Priyambada, say, the movement of the exchange rate has not changed much from the position this week and continue to experience weakness.

"The rupiah weakened back line rising Japanese Yen exchange rate in line with the comments of the Governor of Bank of Japan (BoJ) Haruhiko Kuroda that the stability of the financial system is needed, especially with the government stimulus plan," Reza said in Jakarta, Thursday (30/5 / 2013).

Reza added that the increase in dollars is also associated with the release of news that China cut its economic outlook reflected in the weakening Yuan which impact on a number of currencies in the Asia Pacific region, including the rupiah.

Based on exchange rate of Bank Indonesia (BI), the rupiah steadily weakened since the end of last week traded at Rp 9,772 per U.S. dollar. At the beginning of the week, Monday (27/05/2013), the rupiah also fell back to Rp. 9,792 per U.S. dollar.

Today, Thursday (05/30/2013), the rupiah fell back slightly to Rp 9,811 per U.S. dollar, compared to Wednesday (29/05/2013) is still perched at Rp 9810 per U.S. dollar.