Rupiah weakens to Rp18.174 per US dollar on Wednesday morning
Dollar index gains and higher US bond yields weighed on the currency, with rupiah seen trading in a Rp18.140-Rp18.200 range.
The rupiah opened weaker by 18 points, or 0.10 percent, at Rp18.174 per US dollar in Wednesday trading, down from the previous close of Rp18.156 per US dollar. Bank Woori Saudara analyst Rully Nova said the decline was driven by gains in the US dollar index and US government bond yields, as oil prices climbed again even though the Federal Reserve is expected to hold interest rates at 4 percent in tonight's announcement. At home, sentiment was also pressured by a weaker stock market and reduced investor appetite at Tuesday's government bond auction, October 27. The 10-year bond yield rose to 7.55 percent. Rully expects the rupiah to trade between Rp18.140 and Rp18.200 per US dollar.