Rupiah Weakens Against US Dollar

Jakarta (Antara Bali) - The Indonesian currency rupiah weakened against the US dollar on Monday as the market players are awaiting what would come out from the Fed's planned meeting  this week.

The currency traded at 9,590 on Monday morning losing 30 points  from 9,560 per dollar earlier.

"If the Fed opted for quantitative easing (QE) the dollar will fall," Bank Himpunan Saudara's analyst Rully Nova said here on Monday.

Rully said the European Central Bank, which is focused on battling the euro zone debt crisis by buying bonds, will keep the rupiah from falling deeper.

"The yields on the bonds issued by  ailing economies in Europe would fall strengthening euro as well as risky currencies including rupiah against the US dollar," he added.

Meanwhile Indonesia's manufacturing index, which rose to the level of 51.6 in August  from 51.4 in July is expected to continue to provide a positive sentiment for rupiah, he said.(IGT)